Exercise 1 problem solving (45 points) Line Company prepares financial statements monthly. Below are listed some selected accounts and their balances in the September 30 trial balance before any adjustments have been made for the month of September. LINE COMPANY Trial Balance (Selected Accounts) September 30, 2019 Credit Debit 3,600 3,150 Supplies Prepaid Insurance Office Equipment Unearned rent revenue ONIC email e 16,200 t, 29,900 An analysis of the account balances by the company's accountant provided the following additional information: 1. A physical count of office supplies revealed 700 on hand on September 30. 2. The insurance policy is for 1 year. 3. One-third of the unearned rent revenue was earned during the month of Sept. Instructions Using the above additional information, prepare the adjusting entries that should be made by Line Company for the month of September. Exercise 2 - Short Answer Questions (30 points) 1. Describe the purpose of adjusting entries. Why companies need to prepare adjusting entries and how often? 2. Mention two types of adjusting entries with giving one example for each type