A Company Had Calculated Net Income to Be $77,550 Based

question 56

Multiple Choice

A company had calculated net income to be $77,550 based on the unadjusted trial balance. The following adjusting journal entries were then made: Salaries payable of $790 was recorded; Interest earned but not received from investments $750; Prepaid insurance decreased by $550 for insurance used up during the period; $750 of unearned revenue that has now been earned. After recording these adjustments, net income would be:

• A) $77,710
• B) $74,710
• C) $77,310
• D) $79,600

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Definitions:

Economically Disadvantaged

Individuals or groups who lack adequate financial resources, often resulting in limited access to basic needs, education, and opportunities.

Equality

The condition in which individuals have identical status, rights, and chances.

Least Advantaged

Individuals or groups who have the least resources, opportunities, and social advantages in a society.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.