Before month end adjustments are made, the September 30 trial balance of Horton

Question

Before month end adjustments are made, the September 30 trial balance of Horton Enterprise contains revenue of $9,200 and expenses of $6,300. Adjustments are necessary for the following items:

a.       Depreciation for September is $300

b.      Revenue earned but not yet billed is $2,100

c.       Accrued interest expense is $800

d.      Revenue collected in advance that is now earned is $3,400

e.      Portion of prepaid insurance expired during September is $300

<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Instructions: Calculate the correct net income for Horton

Explanation / Answer

Net Income=(9200+2100+3400)-(6300+300+800+300)=$7000

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.