A company had calculated net income to be $77,550 based on the unadjusted trial balance.The following adjusting entries were then made: Salaries payable of $790 was recorded;Interest earned but not received from investments $750;Prepaid insurance decreased by $550 for insurance used up during the period;$750 of Unearned revenue has now been earned.After recording these adjustments,net income would be:

Question

Quizplus · Accepted Answer

Net income increases by the amount of accrued salaries payable and interest earned but not received, and decreases by the amount of insurance used up and unearned revenue earned.$77,550 + $790 + $750 - $550 - $750 = $77,710

A Company Had Calculated Net Income to Be $77,550 Based