5. Atanta Jalil, local garment company, opened the Swing department on March 1, 2012, by investing $25,000 of their cash in the business. The Jalil leased five acres of land at a cost of $1,000 per month and paid the first month's rent. During the first month, advertising costs totaled $750, of which $150 was unpaid at March 31. All revenues from customers were deposited in the company's bank account. On March 15, Jalil withdrew a total of $1,000 in cash for personal living expenses. A $100 utility bill was received on March 31 but was not paid. On March 31, the balance in the company's bank account was $18,900. Instructions: A. Prepare an income statement, determine the actual net 2 income for March. B. Show debit- credit effect in each of the above 1 transactions. Explain with example: a. Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period? b. If an adjustment includes an entry to a payable or receivable account, which type of adjustment is it? c. If an adjustment includes an entry to Accumulated Depreciation, which type of adjustment is it? Explain with example d. Rent collected in advance is an example of which of the following? Salaries owed but not yet paid is Revenue earned but not yet collected is an example of which of the following? 2