Wham Company accumulates the following adjustment data at December 31.

1. Revenue of $800 collected in advance has been earned.

2. Salaries of $600 are unpaid.

3. Prepaid rent totaling $450 has expired.

4. Supplies of $550 have been used.

5. Revenue earned but unbilled total $750.

6. Utility expenses of $400 are unpaid.

7. Interest of $150 has accrued on a note payable.

Instructions (a) For each of the above items indicate: 1. The type of adjustment. 2. The account relationship (expense/asset, liability/revenue, etc.). 3. The status of account balances before adjustment. 4. The adjusting entry.

(b) Assume net income before the adjustments listed above was $12,500. What is the adjusted net income?

Prepare your answer in the tabular form presented below.

Type of adjustment

Account Relationship

Account balances before adjustment (Understatement/ Overstatement)

Adjusting Entry