Question

Before any month-end adjustments are made, the net income of Bennett Company is $76,400. The following adjustments are necessary: office supplies used, $3,200; services performed for clients but not yet recorded or collected, $3,680; interest accrued on note payable to bank, $3,080. After adjusting entries are made for the items listed above, Bennett Company's net income will be:

Answer 1

Answer:

$ 73.800 is the adjusted net income

Explanation:

Net Income before adjustment                                                      $ 76,400

Adjustments for:

Supplies expense (increasing expense, reducing income)         $  (3.200)

Unrecorded Service Revenues (increasing net income)             $    3.680

Accrual of interest on note to bank

 (increasing expense, reducing income)                                      $   (3.080)

Adjusted net income                                                                      $  73.800