Given the following adjusted trial balance amounts, what is the net income for t
ID: 2416953 • Letter: G
Question
Given the following adjusted trial balance amounts, what is the net income for the year?
Debit balances
Cash…$10,000; Accounts receivable…$4,000; Short-term investments…$10,000; Prepaid rent…$700; Property, plant, & equipment…$20,000; Salary expense…$6,000; Depreciation expense…$2,000; Rent expense…$3,500
Credit balances
Accumulated depreciation…$6,000; Accounts payable…$2,600; Unearned revenue…$3,000; Common stock…$8,000; Retained earnings…$12,000; Service revenue…$24,000; Interest revenue…$600.
Explanation / Answer
Solution.
Calculation of net income.
Particulars Amoount Service revenue 24,000 Interest revenue 600 Salary expense (6,000) Depreciation expense (2,000) Rent expense (3,500) Net Income 13,100