On December 31, 2014, Krug Company reported pretax income of $120,000 prior to the following adjusting entries: Depreciation expense: $31,000.
Accrued service revenues: $29,000.
Accrued expenses: $12,000.
Used insurance: $9,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
How much is Krug's pretax income after adjusting entries?

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The Answer of On December 31, 2014, Krug Company reported pretax income of $120,000 prior to the following adjusting entries: Depreciation expense: $31,000.
Accrued service revenues: $29,000.
Accrued expenses: $12,000.
Used insurance: $9,000; the insurance was initially recorded as prepaid.
Rent revenue earned: $7,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.
How much is Krug's pretax income after adjusting entries?

On December 31, 2014, Krug Company Reported Pretax Income of $120,000