Question

A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income for the current period?

Unadjusted Trial Balance Adjustments Debit Credit Debit Credit Cash 2,025 Accounts receivable 1,050 925 Prepaid insurance 1,650 700 Supplies 380 165 Equipment 8,370 Accumulated depreciation—equipment 770 240 Accounts payable 1,190 Owner, Capital 9,410 Owner, Withdrawals 1,100 Fees earned 7,300 925 Rent expense 1,350 Salaries expense 2,350 Utilities expense 395 Insurance expense 700 Supplies expense 165 Depreciation expense—equipment 240 Totals 18,670 18,670 2,030 2,030

Multiple Choice $3,205. $4,130. $2,100. $2,340. $3,025.

Answer 1

Correct answer---$2100

Income statement
Fees earned	$      7,300.00
Less: Operating expenses
Rent expense	$      1,350.00
Salaries expense	$      2,350.00
Utilities expense	$         395.00
Insurance expense	$         700.00
Supplies expense	$         165.00
Depreciation expense	$         240.00
Total operating expense	$      5,200.00
Net income	$      2,100.00