Month-end adjustments


Before any month-end adjustments are made, the net income of Friendly Company is $125,000. However, the following adjustments are necessary: office supplies used, $7,500; services performed for clients but not yet recorded or collected, $3,200; interest accrued on note payable to bank, $3,400. After adjusting entries are made for the items listed above, Gannett company's net income would be:

A) $139,100.

B) $110,900.

C) $132,300.

D) $117,300.

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Accounting Basics: Month-end adjustments
Reference No:- TGS047492

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