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Ouestion $1($an marke$)$

Presented bere are five economic events. For each item, indicate whether the event incetased $(+x)$

decreased $(-),$ or bad no effect $($NE$)$ on assets, liabilities, and shareholders' equity.

Received cash for services rendered

Purchased supplies on account

Paid employees' salarics

Dividends paid in cash

Expenses paid in cash

Question $2(10$ marks$)$

The Downtown Company accumulates the following adjustment data on December $31.$

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

Salaries of $$600$ are unpaid.

Prepaid rent totaling $$400$ has expired.

Supplies of $$550$ have been used.

Revenue recognized but unbilled totals $$750.$

Utility expenses of $$300$ are unpaid.

Interest of $$250$ has accrued on a note payable.

Required:

a$.$ For each of the above items indicate:

The type of adjustment $($prepaid expense, unearned revenue, accrued revenue, or accrued expense$).$

The adjustment. Indicate the change in each account affected $($Increase $(+)$ or Decrease $(-),$ the account title of each account affected, and the amount.

b$.$ Assume net income before the adjustments listed above was $$22,500.$ What is the adjusted net income?

Prepare your answer in the tabular form presented below.

$22500$