1. The problem asks to briefly explain the double entry system and adjusting entries. 2. The double entry system is an accounting method where every financial transaction affects at least two accounts, with one debit and one credit, keeping the accounting equation balanced: $$\text{Assets} = \text{Liabilities} + \text{Equity}$$. 3. This system ensures accuracy and helps detect errors because the total debits must always equal total credits. 4. Adjusting entries are journal entries made at the end of an accounting period to update account balances before financial statements are prepared. 5. They ensure revenues and expenses are recorded in the period they actually occur, following the matching principle. 6. Examples include accrued expenses, accrued revenues, depreciation, and prepaid expenses adjustments. 7. In summary, the double entry system maintains balance in accounts, and adjusting entries correct account balances to reflect true financial status.