Following are selected December 31 account balances of Kosciusko, Inc. prior to the preparation of year-end adjusting journal entries:
Property, Plant & Equipment............................................. $2,530,200
Cash................................................................................... 90,850
Unearned Rental Revenue.................................................. 79,000
Common Stock................................................................... 250,000
Prepaid Rent....................................................................... 15,400
Land................................................................................... 440,500
Note Payable...................................................................... 150,000
Retained Earnings.............................................................. 3,770,100
Required:
(a) Of the listed accounts, which ones will likely necessitate year-end adjusting journal entries?
(b) Briefly describes the nature of the adjusting journal entries for the accounts identified.
(c) Why would adjusting entries not be needed for each of the non-affected accounts?