Problem: Module 1 Textbook Problem 10 Learning Objectives: 1-10 Show how accounting for prepaid items affects financial statements 1-11 Show how accounting for unearned revenues affects financial statements On November 1, Year 2, Stokes Company paid Eastport Rentals $40,000 for a 12-month lease on warehouse space. Required a. Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation b. Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation Answer is not complete Complete this question by entering your answers in the tabs below. Required A Required B Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign) Required A Required B Record the deferral and the related December 31, Year 2, adjustment for Stokes Company in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) STOKES COMPANY Accounting Equation - Year 2 Assets Liabilities Stockholders' Equity Event Cash Prepaid Common Retained Rent Earnings Paid 12 months rent (40,000) 40,000 0 0 Adjustment for 2 months used (8,000) Stock 0 (8,000) + Required 3 > Complete this question by entering your answers in the tabs below. Required Required Record the deferral and the related December 31, Year 2, adjustment for Eastport Rentals in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole dollar. Enter any decreases to account balances with a minus sign.) EASTPORT RENTALS Accounting Equation - Year 2 Assets Liabilities Cash Unearned Revenue Stockholders' Equity Common Retained Stock Earnings Event Received 12 months rent Emned 2 months rent