Use of account balances as a basis of adjustmentsBob reynolds operates a real estate business. A list of accounts on april 30th 2010, before any adjustments are recorded appears as follows,Required1. For each of the item other data (a) through (h), identify and analyze the adjustments necessary for april 30th 2010.2. Compute the net increase or decrease in net income for the month from the recognition of adjustment in (1). ( ignore income taxes)3. Note the balance in accumulated depreciation- office equipment of $5000. Explain why the account contains a balance of $5000 on April 30th 2010.

Problems List of Accounts Cash $15,700 Prepaid Insurance 450 Office Supplies 250 Office Equipment 50,000 Accumulated DepreciationOffice Equipment 5,000 Automobile 12,000 Accumulated DepreciationAutomobile 1,400 Accounts Payable 6,500 Unearned Commissions 9,500 Notes Payable 2,000 Capital Stock 10,000 Retained Earnings 40,000 Dividends 2,500 Commissions Earned 17,650 Utilities Expense 2,300 Salaries Expense 7,400 Advertising Expense 1,450 Other Data a. The monthly insurance cost is $50. b. Office supplies on hand on April 30, 2010, amount to $180. c. The office equipment was purchased on April 1, 2009. On that date, it had an estimated useful life of ten years. d. On September 1, 2009, the automobile was purchased; it had an estimated useful life of five years. 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 Unearned 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. Interest owed on the note payable but not yet paid amounts to $20. Salaries owed but unpaid to employees at the end of the month amount to $2,500. .3"