Explore BrainMass
Share

# Net income, adjusting entry, resources and distributions

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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

\$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:

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:

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

\$57,000
\$141,000
\$297,000
\$438,000

Distributions by a business to its owners are called:

withdrawals.
expenses.
retained earnings.
net Income.

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

#### 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