Answer:
<u>Net Income 3900</u>
Explanation:
<u><em>REM Consulting</em></u>
<em> </em><u><em>Un adjusted Trial Balance Adjusted Trial Balance </em></u>
<em> </em><u><em> Debit Credit Debit Credit </em></u>
Cash 13,000 13,000
Accounts Receivable 1,500 1,800
Prepaid Insurance 600 200
Supplies 3,800 3,000
Machines 30,000 30,000
Acc. Depreciation 12,000 17,500
Wages Payable 900
Unearned Fees 6,700 6,500
Owner’s Capital 24,000 24,000
Owner’s Drawing 4,800 4,800
Fees Earned 25,000 25,500
Wages Expense 14,000 14,900
Depreciation Expense 5,500
Supplies Expense 800
<u> Insurance Expense 400 </u>
<u>Total 67,700 67,700 74,400 74,400</u>
<u></u>
<u>Adjusting Entries</u>
<u>SR. No Accounts Debit Credit</u>
<u></u>
<u>1)</u> Accounts Receivable 300
Sales 300
As Sales increase so do the Accounts receivable.
2) Insurance Expense 400
Prepaid Insurance 400
Insurance expired by $400.
3) Supplies Expense 800
Supplies 800
Supplies used up by amount $800.
4) Depreciation Expense 5,500
Accumulated Depreciation 5,500
Depreciation Expense amounts to $ 5,500
5) Fees Earned 200
Unearned Fees 200
Provided Services for which payment had been collected,
6) Cash 500
Fees Earned 500
Received $500 for services provided.
7) Wages Payable 900
Cash 900
Paid wages payable to the employee.
REM Consulting
Net income
Fees Earned 25500
Wages Expense 14,900
Depreciation Expense 5,500
Supplies Expense 800
<u> Insurance Expense 400 </u>
<u>Net Income 3900</u>
