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.

---

Definitions:

Socio-emotional Development

Refers to the process by which individuals learn and develop the skills to understand and manage emotions, establish and maintain relationships, and develop a sense of self and others.

Harry Harlow

Harry Harlow was an American psychologist best known for his maternal-separation and social isolation experiments on rhesus monkeys, which highlighted the importance of caregiving and companionship in social and cognitive development.

Comforting Touch

Comforting touch is a physical way of showing empathy, support, or love, which can significantly reduce stress, soothe pain, and increase feelings of connection and security.

Food

Any nutritious substance that people or animals eat or drink in order to maintain life and growth.