Before any month-end adjustments are made,the net income of Bennett Company is $76,000.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,Bennett Company's net income will be:
A)$66,160.
B)$78,560.
C)$73,440.
D)$76,000

Question

Quizplus · Accepted Answer

To calculate the adjusted net income, we need to subtract the total of the adjustments from the original net income. 
Adjusted net income = $76,000 - ($3,160 + $3,640 + $3,040) 
Adjusted net income = $76,000 - $9,840 
Adjusted net income = $66,160 
Therefore, the best choice is C) $73,440.

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