1. For each of the items of other data (a) through (h) provided below, identify and analyze adjustment necessary on April 30, 2017. Do not round intermediate calculations. If required, round your final answers to the nearest dollar.

a. The monthly insurance cost is $50.

b. Office supplies on hand on April 30, 2017, amount to $180.

c. The office equipment was purchased on April 1, 2016. On that date, it had an estimated useful life of ten years. Use straight line method of depreciation.

d. On September 1, 2016, the automobile was purchased; it had an estimated useful life of five years. Use straight line method of depreciation.

e. A deposit is received in advance of providing any services for first-time customers. Amounts received in advance are recorded initially in the account Deferred Commissions. Based on services provided to these first-time customers, the balance in this account at the end of April should be $5,000.

f. Repeat customers are allowed to pay for services one month after the date of the sale of their property. Services rendered during the month but not yet collected or billed to these customers amount to $1,500.

g. Interest owed on the note payable but not yet paid amounts to $20.

h. Salaries owed but unpaid to employees at the end of the month amount to $2,500.

2. Compute the net increase or decrease in net income for the month from the recognition of the adjustments in (1). (Ignore income taxes.)

3. Note the balance in Accumulated DepreciationOffice Equipment of $5,000. Which of the following explains by the account contains a balance of $5,000 on April 30, 2017?

Bob Reynolds operates a real estate business. A list of accounts on April 30, 2017, before any adjustments are recorded, appears as follows: Cash Prepaid Insurance Office Supplies Office Equipment Accumulated Depreciation - Office Equipment Automobile Accumulated Depreciation-Auto $15,700 450 250 50,000 Accounts Payable Deferred Commissions Notes Payable Capital Stock Retained Earnings Dividends Commissions Revenue Utilities Expense Salaries Expense 5,000 12,000 1,400 6,500 9,500 2,000 10,000 40,000 2,500 17,650 2,300 7,400 1,450 Advertising Expense Activity Accounts Statement(s) Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income Balance Sheet Income Statement Stockholders' Net Assets = Liabilities - Equity + Equity Revenues Revenues - Expenses Expenses - Income Income