The following balances exist on Carter Company\'s trial balance (before adjustin

ID: 2482487 • Letter: T

Question

The following balances exist on Carter Company's trial balance (before adjusting entries). What is the net income or loss for the current fiscal year? Accounts Receivable $90,000 Salaries Expense $165,000 Travel Expense 62,000 Accounts Payable 50,000 Retained Earnings 250,000 Wages Expense 76,000 Revenue 450,000 Utilities Expense 5,000 Advertising Expense 28,000 Property Tax Expense 10,000 Cost of Goods Sold 70,000 Inventory 65,000 Select one: a. Net loss of $31,000 b. Net income of $39,000 c. Net income of $34,000 d. Net Income of $104,000

Explanation / Answer

Revenue

$ 450,000

Less: Cost of Goods sold

$ (70,000)

Gross Profit

$ 380,000

Salary Expense

$ 165,000

Travel Expesne

$ 62,000

Wages Expense

$ 76,000

Utilities

$ 5,000

Advertisement Exp

$ 28,000

Property tax

$ 10,000

Net income

$ 34,000