Here is selected information from the 12/31/X7 Trial Balance and Balance Sheet f
ID: 2401377 • Letter: H
Question
Here is selected information from the 12/31/X7 Trial Balance and Balance Sheet for Tang Services, Inc.:
Unadjusted Balances
From Adjusted Trial Balance
Cash
$10,500
$10,500
Accounts receivable
6,000
6,450
Prepaid rent
1,700
1,370
Accounts payable
6,800
6,800
Common stock
12,000
12,000
Retained earnings
5,600
??
Service revenue
6,700
Rent expense
800
Dividends
500
After all adjusting entries are recorded, net income on the 12/31/x7 income statement for Tang Services will be:
$5,520
$5,900
$6,020
$7,150
Unadjusted Balances
From Adjusted Trial Balance
Cash
$10,500
$10,500
Accounts receivable
6,000
6,450
Prepaid rent
1,700
1,370
Accounts payable
6,800
6,800
Common stock
12,000
12,000
Retained earnings
5,600
??
Service revenue
6,700
Rent expense
800
Dividends
500
Explanation / Answer
C.$6,020.
service revenue(6700 + 450 increase in accounts receivable) 7,150 less:rent expense (800 + 330 decrease in ) (1,130) net income 6,020