Wham Company Accumulates the Following Adjustment Data at December 31

question 184

Essay

Wham Company accumulates the following adjustment data at December 31.
1. Revenue of $900 collected in advance has been earned.
2. Salaries of $600 are unpaid.
3. Prepaid rent totaling $450 has expired.
4. Supplies of $550 have been used.
5. Revenue earned but unbilled total $750.
6. Utility expenses of $200 are unpaid.
7. Interest of $250 has accrued on a note payable.
Instructions
(a) For each of the above items indicate:
1. The type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense).
2. The account relationship (asset/liability, liability/revenue, etc.).
3. The status of account balances before adjustment (understatement or overstatement).
4. The adjusting entry.
(b) Assume net income before the adjustments listed above was $14,500. What is the adjusted net income?
Prepare your answer in the tabular form presented below.

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Definitions:

Mantrap

A small room or enclosure with two or more doors designed to control access to secure areas, ensuring only authorized personnel can enter.

Key Fob

Used for keyless entry.

Centralized Authentication

An approach to access control where users' credentials are managed and verified from a central location, enhancing security and simplifying management.

Networked Printer

A printer connected to a computer network, allowing multiple computers to print to it without direct connections.