Question

The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,146 Accounts Receivable 2,625 Prepaid Expenses 706 Equipment 13,948 Accumulated Depreciation 5,457 Accounts Payable 1,627 Notes Payable 4,184 Common Stock 1,000 Retained Earnings 8,630 Dividends 705 Fees Earned 6,510 Wages Expense 2,887 Rent Expense 816 Utilities Expense 310 Depreciation Expense 201 Miscellaneous Expense 64 Totals 27,408 27,408 Determine the net income (loss) for the period.

Answer 1

Answer:

Net income for the period        $

Fees earned                              6,510

Wages                                       (2,887)

Rent expenses                          (816)

Utility expenses                         (310)

Depreciation expenses             (201)

Miscellaneous expenses           (64)

Dividend paid                             (705)

Net income                               1,527

Explanation:

Net income is the excess of fees earned over costs and dividends paid. Thus, we will deduct all the costs and dividend paid from fees earned so as to obtain net income.