Refer to Table 3.5, which summarizes the different types of adjusting journal entries. For each of the following transactions involving Beulah Ltd. (Beulah), identify the type of adjusting entry required as a result of the event. Explain the reason for your choice. Beulah€™s year-end is December31.

Type Example Deferred expense/ Situation Beulah purchased new computer equipment. The estimated life of the equipment is four years. During the period, Beulah has $20,000 of supplies inventory available to use. At the end of the period $3,000 is still on hand prepaid expense In late December, Beulah purchases advertising on a local TV station. As of early January, Beulah hasn't paid or received an invoice for the advertising Beulah pays two years' rent in advance Beulah sells gift cards to customers. Beulah's senior managers earn bonuses for thein excellent performance for the year just ended. The bonuses will be paid in February Beulah earns a royalty from another company for every product the company sells. As of the year-end Beulah hasn't received payment Beulah borrows money during the year. Interest doesn't have to be paid until the next year