Question

Before any month-end adjustments are made, the net income of Russell Company is $37,000. However, the following adjustments are necessary: office supplies used, $3,060; services performed for clients but not yet recorded or collected, $2,940; interest accrued on a note payable to bank, $3,540. After adjusting entries are made for the items listed above, Russell Company's net income would be: Group of answer choices

Answer 1

the net income would be $33,340

Step-by-step explanation:

The computation of adjusted net income is shown below:

= Net income - office supplies used + service performed for clients - interest accrued to bank

- $37,000 - $3,060 + $2,940 - $3,540

= $33,340

Hence, the net income would be $33,340