Question

The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet: Accumulated Depreciation $ 2,868 Fees Earned 15,445 Depreciation Expense 961 Insurance Expense 563 Prepaid Insurance 3,369 Supplies 1,521 Supplies Expense 3,973 Net income for the period is

Answer 1

$9,948

Step-by-step explanation:

Calculation of net income is seen below

Fee earned

$15,445

Less expenses;

Depreciation

($961)

Insurance expense

($563)

Supply expense

($3,973)

Net income

$9,948

• Please note that other items like prepaid insurance, supplies are balance sheet items, hence will be reported under current assets. Accumulated depreciation is also a balance sheet item.