Question

The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,649 Accounts Receivable 2,468 Prepaid Expenses 660 Equipment 14,231 Accumulated Depreciation 2,782 Accounts Payable 1,745 Notes Payable 4,564 Common Stock 1,000 Retained Earnings 8,538 Dividends 783 Fees Earned 8,977 Wages Expense 2,286 Rent Expense 765 Utilities Expense 426 Depreciation Expense 267 Miscellaneous Expense 71 Totals 27,606 27,606 Determine the net income (loss) for the period. a.Net income $4,379 b.Net loss $4,379 c.Net loss $5,162 d.Net income $5,162

Answer 1

Answer:

Stockton Company

The net income (loss) for the period is:

= d. Net income $5,162

Explanation:

Stockton Company Adjusted Trial Balance December 31

Cash                               5,649

Accounts Receivable    2,468

Prepaid Expenses            660

Equipment                    14,231

Accumulated Depreciation        2,782

Accounts Payable                       1,745

Notes Payable                           4,564

Common Stock                          1,000

Retained Earnings                    8,538

Dividends                       783

Fees Earned                             8,977

Wages Expense        2,286

Rent Expense               765

Utilities Expense          426

Depreciation Expense 267

Miscellaneous Expense 71

Totals                      27,606 27,606

Income Statement

For the year ended December 31

Fees Earned                             8,977

Wages Expense        2,286

Rent Expense               765

Utilities Expense          426

Depreciation Expense 267

Miscellaneous Expense 71     3,815

Net income                             5,162