Before month-end adjustments are made the February 28 trial balance of Donner's Pass Hotel contains revenue of $8100 and expenses of $4700. Adjustments are necessary for the following items:
Depreciation for February is $1500.
Revenue recognized but not yet billed is $1700.
Accrued interest expense is $500.
Revenue collected in advance that is now recognized is $2800.
Portion of prepaid insurance expired during February is $300.
Instructions
Calculate the correct net income for Donner's Pass Hotel's Income Statement for February.
Correct Answer:
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