n December 31, 2011, The Bates Companys revenues total $300,000 and expenses tot
ID: 2556919 • Letter: N
Question
n December 31, 2011, The Bates Companys revenues total $300,000 and expenses total $160,000 jore consideration of the following adjusting entries made in December: . Accrued wages total $10,000; . Accrued revenues total $40,000 Depreciation expense is $15,000 Rental revenue of $5,000 was considered earned; the rent was prepaid by a tenant and was initially recorded by Bates as unearned rent revenue; o Bates started the year with $15,000 of office supplies on hand, based on a physical count it was determined that $10,000 of the supplies had been used. What is Bates' net income after consideration of the above information? A. $130,000 B. $170,000 C. $140,000 D. $150,000 30?! E. None of the aboveExplanation / Answer
Answer : D. $150,000
Explanation:
Total Revenues = Unadjusted Revenue + Accrued revenues + Rental revenue recognized
= $300,000 + $40,000 +$5,000 = $345,000
Total Expenses = Unadjusted Expenses + Accrued wages + Depreciation expenses + office supplies used
= $160,000 + $10,000 +$15,000 + $10,000 = $195,000
Net Income = $345,000 - $195,000 = $150,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.