IDENTIFICATION AND CLASSIFICATION OF ADJUSTMENTS. Conklin Services prepares financial statements only once per year using an annual accounting period ending on December 31. Each of the following statements describes an entry made by Conklin on December 31 of a recent year:

a) On December 31, Conklin completed a service engagement for Pizza Hut begun in August and recorded the related revenue.

b) For a monthly fee billed 7 working days after the end of every month, Conklin provides weekly service visits to the local J.C. Penney store to check and maintain various pieces of computer printing equipment. On December 31, Conklin recorded revenue for the visits completed during December for which cash will not be received until January.

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e) Conklin’s salaried employees are paid on the last day of every month. On December 31, Conklin recorded the payment of December salaries.

Conklin’s hourly wage employees are’paid every Friday. On December 31, Conklin recorded as payable the wages for the first 3 working days of the week in which the year ended.

e) On December 31, Conklin recorded the receipt of a shipment of office supplies from Office Max to be paid for in January.

f) On December 31, Conklin recorded the estimated use of supplies for the year.

g) Early in December, Conklin was paid in advance by TRW for 2 months of weekly service visits. Conklin recorded the advance payment as a liability. On December 31, Conklin recorded revenue for the service visits to TRW that were completed during December.

h) On December 31, Conklin recorded depreciation expense on office equipment for the year.

REQUIRED:

Indicate whether each entry is an adjustment or a regular journal entry, and if it is an adjustment, identify it as one of the following types: (1) revenue recognized before collection, (2) expense recognized before payment, (3) revenue recognized after collection, or (4) expense recognized after payment.