End-Of-Period Adjustments-Effect on Profit

question 23

Essay

End-of-period adjustments-effect on profit
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 profit of Hot Jazz Studio after these adjustments have been recorded. Show the effect of each adjustment in the space provided. Compute profit after adjustments and place answer in space provided.

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Definitions:

Ability

The possession of the means or skill to do something, often considered in terms of natural talent or acquired skills.

Ethical Behavior

Conducting oneself according to morally sound principles in personal and professional settings.

Environmental Abuses

Refers to activities and actions that cause harm or damage to the natural environment, often due to human activities such as pollution, deforestation, and wildlife exploitation.

Direction of Attention

The focus or prioritization of cognitive resources on specific aspects of the environment or a task.