Evans Company completed its first year of operations on December 31, 2017. All of the 2017 entries have been recorded, except for the following:
a. At year-end, employees earned wages of $6,000, which will be paid on the next payroll date, January 6, 2018.
b. At year-end, the company had earned interest revenue of $3,000. The cash will be collected March 1, 2018.

Required:
1. What is the annual reporting period for this company?
2. Identify whether each transaction above is a deferral or an accrual. Using the process illustrated in the chapter, prepare the required adjusting entry for transactions (a) and (b). Include appropriate dates and write a brief explanation of each entry.
3. Why are these adjustments made?