32. Before month-end adjustments are made, the February 28 trialbalance of Bose\
ID: 2446120 • Letter: 3
Question
32.
Before month-end adjustments are made, the February 28 trialbalance of Bose's Enterprise contains revenue of $11,000 andexpenses of $7,600. Adjustments are necessary for the followingitems:
•
Depreciation for February is $1,200.
•
Revenue earned but not yet billed is $2,800.
•
Accrued interest expense is $800.
•
Revenue collected in advance that is now earned is $2,500.
•
Portion of prepaid insurance expired during February is$500.
Instructions
Calculate the correct net income for Bose's Enterprise forFebruary 3.
32.
Before month-end adjustments are made, the February 28 trialbalance of Bose's Enterprise contains revenue of $11,000 andexpenses of $7,600. Adjustments are necessary for the followingitems:
•
Depreciation for February is $1,200.
•
Revenue earned but not yet billed is $2,800.
•
Accrued interest expense is $800.
•
Revenue collected in advance that is now earned is $2,500.
•
Portion of prepaid insurance expired during February is$500.
Instructions
Calculate the correct net income for Bose's Enterprise forFebruary 3.
Explanation / Answer
BOSE ENTERPRISE'S 3FEB
BOSE ENTERPRISE'S 3FEB
Revenue $11,000 Adjustment Accounts receivable $2,800 unearned revenue $2,500 Adjusted Revenue $16,300 Less: Expenses $7,600 Adjustment Dep $1,200 Interest Expesne $800 Insurance expense $500 Adjusted Expesne ($10,100) NET INCOME $6,200Related Questions
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