The adjusted trial balance for Nick’s Golf Supplies follows. Determine the net i
ID: 2416465 • Letter: T
Question
The adjusted trial balance for Nick’s Golf Supplies follows. Determine the net income for the month of November and the balance in the Retained Earnings account that would appear on the balance sheet.
The adjusted trial balance for Nick's Golf Supplies follows. Determine the net income for the month of November and the balance in the Retained Earnings account that would appear on the balance sheet. Nick's Golf Supplies Adjusted Trial Balance 30-Nov-13 Debits Credits Cash Supplies Inventory Equipment A/D - Equipment Accounts Payable Capital Stock Retained Earnings Sales Salary expense Advertising expense Depreciation expense Supplies expense $1,340 $2,87o $19,590 $15,225 10,00O $2,440 $20,o00 $5,920 $16,000 $12,625 100 $2,175 $43 $54,360 Totals $54,360 (Ctrl)Explanation / Answer
Net Income of the month November:
Sales = $ 16,000
Less: Expenses:
Salary Expense = $ 12,625
Advertising Expense = $ 100
Depreciation Expense = $ 2175
Supplies Expense = $ 435
$ 15335
Net Income = (16000-15335) = $ 665
Retained Earnings:
Opening Balance Retained earnings = $ 16,000
Earnings during the month = $ 665
Total Retained Earnings = $ 16,665