Before Month-End Adjustments Are Made, the February 28 Trial Balance $\bullet$

question 105

Essay

Before month-end adjustments are made, the February 28 trial balance of Alice's Adventures contains revenue of $9,000 and expenses of $4,400. Adjustments are necessary for the following items:
$\bullet$ Depreciation for February is $1,800.
$\bullet$ Revenue earned but not yet billed is $2,300.
$\bullet$ Accrued interest expense is $700.
$\bullet$ Revenue collected in advance that is now earned is $3,500.
$\bullet$ Portion of prepaid insurance expired during February is $400.
Instructions
Calculate the correct net income for Alice's Income Statement for February.

---

Definitions:

Reasonable Time

An undefined period which is fair and appropriate under the circumstances for the performance of a certain action or fulfillment of a duty in a legal context.

Offer Expired

A situation where a proposal for a contract or agreement has reached its time limit without acceptance, rendering it void.

Communicating Acceptance

The process by which the party to whom an offer has been made notifies the offeror that they accept the terms of the offer.

Specified Means

A clearly defined method or procedure outlined for achieving a given end or goal.