Response to the following questions:
1. Which of the following accounts would appear only in an accrual basis accounting system, and which could appear in either a cash basis or an accrual basis accounting system?
(a) Capital Stock, (b) Fees Earned, (c) Accounts Payable, (d) Land, (e) Utilities Expense, and (f) Accounts Receivable.
2. Is the supplies balance before the accounts have been adjusted the amount that should normally be reported on the balance sheet? Explain.
3. Why are adjustments needed at the end of an accounting period?