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Before Making Month-End Adjustments, Profit of Cardinal Company Was $116,000

Question 87

Multiple Choice

Before making month-end adjustments, profit of Cardinal Company was $116,000 for March. Adjusting entries are necessary for the following items: Depreciation for the month of March: $2,300.
Interest accrued to March 31, on deposits in banks: $800.
Supplies used in March: $100.
Fees earned in March that had been collected in advance: $2,600.
After recording these adjustments, profit for March is:


A) $112,400.
B) $113,620.
C) $117,000.
D) $110,800.

Correct Answer:

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