The net profit reported on the profit and loss statement is $50 000.However,adjusting entries have not been made at the end of the period for electricity expense of $500 and accrued salaries of $1300.Net profit should be:

Question

Quizplus · Accepted Answer

The net profit reported on the profit and loss statement is $50,000, but it does not account for adjusting entries, i.e., electricity expense of $500 and accrued salaries of $1300. Therefore, the total amount of unadjusted net profit is $50,000 - $500 - $1300 = $48,200, which represents the correct figure. Hence, option A is the correct answer.

The Net Profit Reported on the Profit and Loss Statement