Question

A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period? Unadjusted Trial Balance Adjustments Debit Credit Debit Credit 1,975 1,000 875 1,600 650 330 115 8,320 Canh Accounts receivable Prepaid insurance Supplies Equipment Accumulated depreciation equipment Accounts payable Owner, Capital Owner, Withdrawals Fees enned 720 190 1, 140 9, 110 1,050 7,250 1,300 2,300 345 Rent expense Salaries expense Utilities expense Insurance expense Пupplie expense Depreciation expense equipment 650 115 190 18, 220 10,220 1,830 1,030

Answer 1

Based on the information provided, what is net income for the current period?

Answer: Net Income $3,225

Explanation: (a) Adjusted Trial Balance Adjustments Debit Credit $875 $650 115 Unadjusted Trial Balance Debit Credit $1,975 1,000 1,600 330 8,320 $720 1.140 9,110 1,050 7,250 1,300 2,300 345 Cash Accounts receivable Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Accounts payable Owner, Capital Owner, Withdrawals Fees earned Rent expense Salaries expense Utilities expense Insurance expense Supplies expense Depreciation expense—equipment Totals Adjusted Trial Balance Debit Credit $1,975 1,875 950 215 8,320 $910 1,140 9,110 1,050 190 875 8,125 1,300 2,300 345 650 650 115 190 115 190 $19,285 $18,220 $18,220 $1,830 $1,830 $19,285

come Statement $8,125 Revenues Fees earned Expenses Rent expense Salaries expense Utilities expense Insurance expense Supplies expense Depreciation expense—equipment Total expenses Net Income 1 (Loss) $1,300 2,300 345 650 115 190 4,900 $3,225