Before month-end adjustments are prepared, the February 28 trial balance of Donner's Pass Hotel contains revenue of $8,100 and expenses of $4,700. Adjustments are necessary for the following items:
* Depreciation for February is $1,500.
* Unpaid salaries & wages are $500.
* Prepaid insurance expired during February is $300.
Instructions
Calculate the correct net income for Donner's Pass Hotel's Income Statement for the month of February.

Question

Quizplus · Accepted Answer

The Answer of Before month-end adjustments are prepared, the February 28 trial balance of Donner's Pass Hotel contains revenue of $8,100 and expenses of $4,700. Adjustments are necessary for the following items:
* Depreciation for February is $1,500.
* Unpaid salaries & wages are $500.
* Prepaid insurance expired during February is $300.
Instructions
Calculate the correct net income for Donner's Pass Hotel's Income Statement for the month of February.

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