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Problem #3 Before month-end adjustment are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $6000 and expenses of $4,400. Adjustments
Problem #3 Before month-end adjustment are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $6000 and expenses of $4,400. Adjustments are necessary for the following items: .Depreciation for February is $1,800. .Revenue earned but not yet billed is $2,700. . Accrued interest expense is $700. . Revenue collected in advance that is now earned is $2,500. . Portion of prepaid insurance expired during February is $400. Instructions calculate the correct net income or Neutral Milk Hotel?s Income Statement for February. Problem #4 Buena Vista Social Club accumulates the following adjustment data at December 31. 1.Revenue of $1,100 collected in advance has been earned. 2. Salaries of $600 are unpaid
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