Mobol, a wireless phone carrier, 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 13, 2018. 

b. At year-end, the company had earned interest revenue of $3,000. It will be collected March 1, 2018. 

Required: 

1. What is the annual reporting period for this company? 

2. Identify whether each required adjustment is a deferral or an accrual. 

3. Show the accounting equation effects of each required adjustment, using the format shown in the demonstration case. 

4. Why are these adjustments needed?