5. On March 5, 2026, you were hired by Wildhorse Inc., a closely held company, as a staff member of its newly created internal auditing department. While reviewing the company's records for 2024 and 2025, you discover that no adjustments have yet been made for the following items. Items 1. 2. 3. 4. Interest income of $15.300 was not accrued at the end of 2024. It was recorded when received in February 2025. A computer costing $3,680 was expensed when purchased on July 1, 2024. It is expected to have a 4-year life with no salvage value. The company typically uses straight-line depreciation for all fixed assets. Research and development costs of $36,300 were incurred early in 2024. They were capitalized and were to be amortized over a 3-year period. Amortization of $12,100 was recorded for 2024 and $12,100 for 2025. On January 2, 2024, Wildhorse leased a building for 5 years at a monthly rental of $8,500. On that date, the company paid the following amounts, which were expensed when paid. Security deposit First month's rent Last month's rent $20,500 8,500 8,500 $37,500 The company received $35,100 from a customer at the beginning of 2024 for services that it is to perform evenly over a 3- year period beginning in 2024. None of the amount received was reported as unearned revenue at the end of 2024.

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