What is net income for Shiver Ice House?
$\begin{array}{lrr}
\text { Common Stock..... } \$ 120,000 & \text { Accounts Payable.....\$25,000 } \
\text { Cash...............\$116,640 } & \text { Accounts Receivable..\$22,450 } \
\text { Supplies.......... } \$ 1,500 & \text { Office Equipment.....\$23,300 } \
\text { Prepaid Rent......... } \$ 3,200 & \text { Unearned Revenue.... } \$ 4,152 \
\text { Revenue............ } \$ 20,000 & \text { Utilities Expense....... } \$ 422 \
\text { Retained Earnings... } \$ 30,000 & \text { Shaving Equipment... } \$ 31,640
\end{array}$

Question

Quizplus · Accepted Answer

Net income is calculated as Revenue minus Expenses. Here, Revenue is $20,000 and the only expense listed is Utilities Expense of $422. Therefore, Net Income = $20,000 - $422 = $19,578.

What Is Net Income for Shiver Ice House A) $19,578 B) $20,528 C) $23,728 D) $49,578 E) $24,578

What Is Net Income for Shiver Ice House A) $19,578
B) $20,528
C) $23,728
D) $49,578
E) $24,578