Problem:
The following items appeared on a company's December 31 work sheet for the current period. Based on the following information, what is net income for the current period?
Cash Unadjusted
Trial Balance Adjustments
Debit Credit Debit Credit
975
Prepaid insurance 3,600 150
Supplies 180 70
Equipment 10,320
Accounts payable 1,140
Unearned fees 4,500 375
Owner, Capital 9,180
Owner, Withdrawals 1,650
Fees earned 5,850 375
300
Rent expense 1,500
Salaries expense 2,100 315
Utilities expense 345
Insurance expense 150
Supplies expense 70
Depreciation expense—equipment 190
Accumulated depreciation—equipment 190
Salaries payable 315
Accounts receivable 300
Totals 20,670 20,670 1,400 1,400