The adjusted trial balance for Nick’s Golf Supplies follows. Determine the net i

Question

The adjusted trial balance for Nick’s Golf Supplies follows. Determine the net income for the month of November and the balance in the Retained Earnings account that would appear on the balance sheet.

The adjusted trial balance for Nick's Golf Supplies follows. Determine the net income for the month of November and the balance in the Retained Earnings account that would appear on the balance sheet. Nick's Golf Supplies Adjusted Trial Balance 30-Nov-13 Debits Credits Cash Supplies Inventory Equipment A/D - Equipment Accounts Payable Capital Stock Retained Earnings Sales Salary expense Advertising expense Depreciation expense Supplies expense $1,340 $2,87o $19,590 $15,225 10,00O $2,440 $20,o00 $5,920 $16,000 $12,625 100 $2,175 $43 $54,360 Totals $54,360 (Ctrl)

Explanation / Answer

Net Income of the month November:

Sales = $ 16,000

Less: Expenses:

Salary Expense = $ 12,625

Advertising Expense = $ 100

Depreciation Expense = $ 2175

Supplies Expense = $ 435

$ 15335

Net Income = (16000-15335) = $ 665

Retained Earnings:

Opening Balance Retained earnings = $ 16,000

Earnings during the month = $ 665

Total Retained Earnings = $ 16,665

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