End-Of-Period Adjustments-Effect on Net Income

question 144

Essay

End-of-period adjustments-effect on net income
Before making any year-end adjusting entries, the revenues of Hot Jazz Studio exceeded expenses by $127,000. However, the following adjustments are necessary:
(A.) Prepaid rent consumed, $1,500.
(B.) Services rendered to clients but not yet billed, $20,000.
(C.) Interest accrued on notes payable, $1,100.
(D.) Depreciation, $4,800.
(E.) Accrued wages payable, $3,900.
(F.) Fees collected in advance which have now been earned, $7,100.
Complete the schedule to determine the net income of Hot Jazz Studio after these adjustments have been recorded. Show the effect of each adjustment in the space provided. Compute net income after adjustments and place answer in space provided.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow in his 1943 paper, detailing a five-tier model of human needs, from basic (physiological) to advanced (self-actualization).

Leadership

The act of guiding or influencing a group towards the achievement of goals, involving vision, inspiration, and direction.

Influencing

Refers to the capacity or power to affect others' views, behavior, or decisions, often used within leadership, marketing, and social interaction contexts to achieve desired outcomes.

Negotiators

Individuals or parties involved in discussions aimed at reaching an agreement or resolving a dispute.