Purchase Solution

Compute net income from the adjusted trial balance

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution
Solution Summary

Computation of net income shown from trial balance amounts.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

View More Free Quizzes
Related BrainMass Solutions

  • Adjusted Trial Balance

    Make the adjusted entries that account for the differences between the two trial balances. Western is not subject to income tax. 2 compute western's total assets, total liabilities, total equity, and net income Please see the attached file.

  • un adjusted trial balance

    You only need to add the net income. The solution discusses an un-adjusted trial balance.

  • Discussion questions about adjusted and after-trial balances

    Net income from Income summary is closed to Retained Earning and final ending balance of Retained earning is shown in Post closing Trial Balance.

  • Mulberry - Income statement

    545376 Mulberry - Income statement The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Mulberry Street Sportswear as they appear on the 12/31/11 adjusted trial balance.

  • Benjamin O'Henry has owned and operated O'Henry's Data Servi

    The most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price. The least O'Henry will take for the business is his ending capital. Compute this amount.

  • O'Henry's Data Services Unjusted Trial Balance Sheet

    The most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price. The least O'Henry will take for the business is his ending capital. Compute this amount.

  • Principles of Accounting: Practice Exam Questions.

    After the account balances have been extended from the Adjusted Trial Balance columns on the work sheet, the difference between the initial totals of the Balance Sheet debit and credit columns is Net Income or Net Loss.   TRUE   FALSE 4.  

  • income statement, balance sheet and retained earnings

    279170 income statement, balance sheet and retained earnings PROBLEM A The adjusted trial balance of Jacks Financial Planners appears below and using the information from the adjusted trial balance, you are to prepare for the month ending December 31

  • Picard and Company: Prepare journal entries and complete the adjusted trial balance

    Prepare the journal entries for the above adjustments, record them in the appropriate columns and calculate the new balances in the adjusted trial balance. 2. What is the net income for the period?

View More Related Solutions