The following accounts were taken from the Adjusted Trial Balance columns of the work sheet: $\begin{array}{ll}
\text { Accumulated Depreciation } & \$ 3,200 \
\text { Fees Earned } & 17,400 \
\text { Depreciation Expense } & 1,300 \
\text { Insurance Expense } & 400 \
\text { Frepaid Insurance } & 4,800 \
\text { Supplies } & 900 \
\text { Supplies Expense } & 3,800
\end{array}$ Net income for the period is
A) $5,500
B) $11,900
C) $17,400
D) $8,700

Question

Quizplus · Accepted Answer

Net income is calculated as total revenues minus total expenses. Here, Fees Earned is the revenue ($17,400), and the expenses are Depreciation Expense ($1,300), Insurance Expense ($400), and Supplies Expense ($3,800). Net income = $17,400 - ($1,300 + $400 + $3,800) = $11,900.

The Following Accounts Were Taken from the Adjusted Trial Balance