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Given the Following Adjusted Trial Balance Net Income for the Year Is:
A) $98

Question 203

Multiple Choice

Given the following adjusted trial balance:   Debit     Credit   Cash....................................................................$1,562 Accounts receivable ............................................2,098 Inventory ...........................................................3,124 Prepaid rent ......................................................86 Equipment ......................................................300 Accumulated depreciation-equipment ...............52 Accounts payable ............................................82 Unearned service revenue ...................................122 Common stock ......................................................206 Retained earnings .................................................6,610 Service revenue ......................................................268 Interest revenue ......................................................56 Salaries and wages expense ......................................160 Travel expense ...........................................................66  Total .......................................................................... $7,396  $7,396  \begin{array}{cc}& \text{ \underline{\text{ \underline{\text{Debit }} }} } & \text{ \underline{\text{\underline{\text{ Credit}} }} } \\\text{ Cash} .................................................................... & \$1,562 & \\\text{ Accounts receivable } ............................................& 2,098 & \\\text{ Inventory } ........................................................... & 3,124 & \\\text{ Prepaid rent } ...................................................... & 86 & \\\text{ Equipment } ...................................................... & 300 & \\\text{ Accumulated depreciation-equipment }............... & & 52 \\\text{ Accounts payable }............................................ & & 82 \\\text{ Unearned service revenue } ................................... & & 122 \\\text{ Common stock } ......................................................& & 206 \\\text{ Retained earnings } ................................................. & & 6,610 \\\text{ Service revenue } ......................................................& & 268 \\\text{ Interest revenue } ...................................................... & & 56 \\\text{ Salaries and wages expense } ......................................& 160 & \\\text{ Travel expense } ........................................................... & \underline{\text{66 }} & -\\\text{ Total } .......................................................................... & \underline{\text{ \underline{\text{\$7,396 }} }} & \underline{\text{\underline{\text{\$7,396 }} }} \\ \end{array} Net income for the year is:


A) $98.
B) $270.
C) $324.
D) $496.

Correct Answer:

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