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    Compute net income from the adjusted trial balance

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    The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is net income for the current period?

    Cash Unadjusted
    Trial Balance Adjustments
    Debit Credit Debit Credit
    975
    Prepaid insurance 3,600 150
    Supplies 180 70
    Equipment 10,320
    Accounts payable 1,140
    Unearned fees 4,500 375
    Owner, Capital 9,180
    Owner, Withdrawals 1,650
    Fees earned 5,850 375
    300
    Rent expense 1,500
    Salaries expense 2,100 315
    Utilities expense 345
    Insurance expense 150
    Supplies expense 70
    Depreciation expense—equipment 190
    Accumulated depreciation—equipment 190
    Salaries payable 315
    Accounts receivable 300
    Totals 20,670 20,670 1,400 1,400

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    Solution Summary

    Computation of net income shown from trial balance amounts.

    $2.19