Homework Answers
Answer:
Revenues earned 45,000
Expenses incurred for the period - 22,000
Net income $23,000
Expenses incurred for the period = Cash paid for expenses +
Accounts payable - Prepaid rent for next period
= 26,000 + 3,000 - 7,000
= $22,000
Hence, net income for the current year = $23,000
In the question image, only two options have been provided. Some options are missing.
Option having $23,000 is the correct option.
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