accounts requiring adjustment\nindicate with a yes or no whether or not each of the following accounts…

Brief Explanations:

• Building: Buildings are subject to depreciation, which requires an adjusting entry to allocate the cost over its useful life.
• Cash: Cash transactions are usually recorded when they occur (e.g., cash receipts or payments). There is no need for an adjusting entry for cash itself as its balance is based on actual inflows and outflows.
• Common Stock: Common stock represents the initial investment in the company. Its balance is determined by share issuances and is not typically adjusted through adjusting entries.
• Land: Land is not depreciated (as it has an indefinite useful life in most cases). So, no adjusting entry for depreciation (a common adjusting entry type) is needed for land.
• Prepaid Rent: Prepaid rent is an asset initially. As time passes and the rent period is used up, an adjusting entry is needed to recognize the rent expense and reduce the prepaid asset.
• Wages Expense: If employees have worked but not been paid by the end of an accounting period, an adjusting entry is required to accrue the wages expense (recognize the expense for the work done) and create a liability (wages payable).

Answer:

a. Yes b. No c. No d. No e. Yes f. Yes