Problem # 4

Buena Vista Social Club accumulates the following adjustment data at December 31.

Debit Credit

1. Revenue of $1,100 collected in advance has been earned.

2. Salaries of $600 are unpaid.

3. Prepaid rent totaling $500 has expired.

4. Supplies of $450 have been used.

5. Revenue earned but unbilled total $750.

6. Utility expenses of $200 are unpaid.

7. Interest of $300 has accrued on a note payable.

Instructions

1. Assume net income before the adjustments listed above was $15,500. What is the adjusted net income assuming all of the adjustments above are made properly and on a timely basis?

Answer ____________