Pierce Company Was Founded in Year 1 and Engaged in the Following

Pierce Company was founded in Year 1 and engaged in the following transactions:Issued common stock for cashPaid rent in advance for three months at a timePurchased supplies on accountCollected cash from a customer for services to be provided over a period of one yearPaid a cash dividend to stockholdersPurchased a two-year fire insurance policyProvided services to customers on accountCollected cash from customers in partial settlement of accounts receivablePaid cash for various operating expensesRequired:a)Identify the transactions from the list above that will require adjusting entries at year end.b)Explain why adjusting entries are required before financial statements can be prepared.