Question

The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: Accumulated Depreciation $3,200 Fees Earned 17,400 Depreciation Expense 1,300 Insurance Expense 200 Prepaid Insurance 4,800 Supplies 900 Supplies Expense 3,800 Net income for the period is: A $3,200 B$12,100 C$17,400 D$8,900

Answer 1

Answer:

$12,100

Explanation:

Data provided;

Accumulated Depreciation = $3,200

Fees Earned = $17,400

Depreciation expense = $1,300

Insurance Expense = $200

Prepaid Insurance = $4,800

Supplies = $900

Supplies Expense = $3,800

Now,

The Net income

= Fees Earned - Depreciation Expense - Insurance Expense - Supplies Expense

= $17,400 - $1,300 - $200 - $3,800

= $12,100