Before month-end adjustments are made, the February 28 trial balance of Cole's Enterprise contains revenue of $11,000 and expenses of $8,900. Adjustments are necessary for the following items:
-Depreciation for February is $1,200.
-Revenue earned but not yet billed is $2,800.
-Accrued interest expense is $900.
-Revenue collected in advance that is now earned is $2,500.
-Portion of prepaid insurance expired during February is $500.
Instructions:
Calculate the correct net income for Cole's Enterprise for February 3.

Question

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The Answer of Before month-end adjustments are made, the February 28 trial balance of Cole's Enterprise contains revenue of $11,000 and expenses of $8,900. Adjustments are necessary for the following items:
-Depreciation for February is $1,200.
-Revenue earned but not yet billed is $2,800.
-Accrued interest expense is $900.
-Revenue collected in advance that is now earned is $2,500.
-Portion of prepaid insurance expired during February is $500.
Instructions:
Calculate the correct net income for Cole's Enterprise for February 3.

Before Month-End Adjustments Are Made, the February 28 Trial Balance