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slega [8]
3 years ago
13

Before making month-end adjustments, net income of Bobwhite Company was $232,500 for March. Adjusting entries are necessary for

the following items:
Depreciation for the month of March: $4,400.
Rental income accrued during March, tenant to pay in April: $910.
Supplies used in March: $310.
Fees earned in March that had been collected in advance: $3,700.

After recording these adjustments, net income for March is:_________

a. $112,400.
b. $113,620.
c. $117,000.
d. $110,800.
Business
1 answer:
Juli2301 [7.4K]3 years ago
4 0

Answer:

Net income after adjustment          $225,000    

Explanation:

The various adjustments are effected below:

                                                                         $                        Note

Net income before adjustment                  232,500

Depreciation                                                (4,400)                    1

Rental income                                                910                        2

Supplies                                                           (310)                     3

Fees earned                                                <u>   (3,700) </u>                  4

Net income after adjustment                       <u>225,000</u>    

Notes

1 Depreciation represents a consumption of asset hence it is an expense which reduces profit .So, it deducted

2. Rental income accrued implies income earned but not received. So we need to record it for the period it was earned, hence we add it.

3. Supplies used represents consumption of assets, i.e an expense. So, we  deduct it from the income.

4. The income received in advance represents unearned income . This would be deducted from the net income

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3 years ago
Tater and Pepper Corp. reported free cash flows for 2018 of $58.1 million and investment in operating capital of $41.1 million.
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8 0
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You run the Social Security Administration. What about this chart might worry you?
AURORKA [14]

Answer:

The amount of taxpayers that are part of the "older generation" is slowly rising and is higher than the amount in 1997.

Explanation:

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~

8 0
2 years ago
Read 2 more answers
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