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    Net income, adjusting entry, resources and distributions

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    Fundamental Accounting Principles

    Determine the net income of a company for which the following information is available for the month of May.

    Employee salaries expense $180,000
    Interest expense $10,000
    Rent Expense $20,000
    Consulting revenue $400,000

    Answer
    Question 5 answers
    $190,000
    $210,000
    $230,000
    $400,000

    Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:

    Answer
    Question 6 answers
    debit Office Supplies $105 and credit Office Supplies Expense $105.
    debit Office Supplies Expense $105 and credit Office Supplies $105.
    debit Office Supplies Expense $254 and credit Office Supplies $254.
    debit Office Supplies $254 and credit Office Supplies Expense $254.

    Resources owned or controlled by a company that are expected to yield benefits are:

    Answer
    Question 8 answers
    assets.
    revenues.
    liabilities.
    owner's equity.

    Use the following information as of December 31 to determine equity.
    Liabilities $141,000
    Cash $57,000
    Equipment $206,000
    Buildings $175,000

    Answer
    Question 9 answers
    $57,000
    $141,000
    $297,000
    $438,000

    Distributions by a business to its owners are called:

    Answer
    Question 10 answers
    withdrawals.
    expenses.
    retained earnings.
    net Income.

    What is a trial balance? What is its purpose? APA.

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    Solution Preview

    See attached file for trial balance exampe.

    Q 5 :
    Consulting revenue $400,000
    Less: Expenses:
    Employee salaries expense $180,000
    Interest expense $10,000
    Rent Expense $20,000 $210000

    Net Income $ 190000

    Q 6: Debit Office Supplies Expense 254
    Credit Office Supplies. 254

    Q 8 Assets

    Q 9 Cash $57,000
    Equipment $206,000
    Buildings $175,000
    Total Assets: $438000
    Less: Liabilities $141,000
    Equity (Net Worth) $297000

    Q 10 Drawing

    Answer to Long question on Trial Balance:

    Meaning of a Trial ...

    Solution Summary

    The expert determines the net income of a company for which information is available.

    $2.19