Before any month-end adjustments are made, the profit of Bennett Company is $76,000. However, the following adjustments are necessary: office supplies used, $3,160; services performed for clients but not yet recorded or collected, $3,640; interest accrued on note payable to bank, $3,040. After adjusting entries are made for the items listed above, Russell Company's profit would be:

Question

Quizplus · Accepted Answer

To find the adjusted profit, we need to subtract the total amount of adjustments from the initial profit. 
Adjusted profit = Initial profit - Adjustments 
Adjusted profit = $76,000 - $3,160 - $3,640 - $3,040 
Adjusted profit = $66,160 
Therefore, the answer is choice C.

Before Any Month-End Adjustments Are Made, the Profit of Bennett