For each situation below, record the ADJUSTING ENTRY required at December 31, 2010 in the records of Dee's Design, Inc., prior to the company's preparation of annual financial statements. Then, by UNDERLINING your responses, indicate the type of entry and if it is reversible. a. On December 1, 2010, Dee's received $2,700 payment in advance for consulting services to be performed over the next three months. Assuming that the $2,700 was put in a liability account, what adjustment would be required on December 31, 2010? Dec. 31 WHAT TYPE? Accrual Deferral REVERSIBLE? Yes No b. On November 1, 2010. Dee's Design, Inc. paid $2,500 to cover five months' rent of additional storage space. At that time, the payment was recorded in an expense account. sni What adjustment would be required on December 31, 2010? Dec. 31 WHAT TYPE? Accrual Deferral REVERSIBLE? Yes No c. On August 1, 2010. Dee's Design, Inc. made a 10%, 4-year loan to another business. Record the necessary adjusting entry related to interest on the $15,000 loan. Dec. 31 WHAT TYPE? Accrual Deferral REVERSIBLE? Yes No Omitting each entry ABOVE does what to the items below? Net Income Total Assets Total Liabilities Owners' Equity a. USE THIS KEY Overstates o Understates U No Effect NE b