Before any month-end adjustments are made,the net income of Russell Company is $38,000.However,the following adjustments are necessary: office supplies used,$3,160;services performed for clients but not yet recorded or collected,$3,040;interest accrued on a note payable to bank,$3,640.After adjusting entries are made for the items listed above,Russell Company's net income would be:
A)$38,000.
B)$34,240.
C)$41,160.
D)$44,200.

Question

Quizplus · Accepted Answer

To determine the adjusted net income, we need to subtract the total of the adjustments from the original net income:
$38,000 - $3,160 - $3,040 - $3,640 = $34,240
Therefore, the correct answer is B) $34,240.

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