Question: Mobol, a wireless phone carrier, completed its first year of operations on December 31, 2013. All of the 2013 entries have been recorded, except for

Mobol, a wireless phone carrier, completed its first year of operations on December 31, 2013. All of the 2013 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, 2014.
b. At year-end, the company had earned interest revenue of $3,000. It will be collected March 1, 2014.
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?

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