Before making month-end adjustments,net income of Cardinal Company was $116,000 for March.Adjusting entries are necessary for the following items: -Depreciation for the month of March: $2,300.
-Rental income accrued during March,tenant to pay in April: $800.
-Supplies used in March: $100.
-Fees earned in March that had been collected in advance: $2,600.
After recording these adjustments,net income for March is:
A)$112,400.
B)$113,620.
C)$117,000.
D)$110,800.

Question

Quizplus · Accepted Answer

Net income after adjustments = Original net income + Rental income accrued + Fees earned - Depreciation - Supplies used = $116,000 + $800 + $2,600 - $2,300 - $100 = $117,000.

Before Making Month-End Adjustments,net Income of Cardinal Company Was $116,000