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

question 106

Essay

A company had calculated net income to be $77,550 based on the unadjusted trial balance.The following adjusting entries were then made for:
-Salaries and wages owed but not yet paid of $790
-Interest earned but not received from investments of $750
-Prepaid insurance premiums amounting to $550 have expired
-Unearned revenue in the amount of $750 has now been earned.
Required:
Determine the amount of net income (loss)that will be reported after the adjustments are recorded.

---

Definitions:

Simple Negligence

A legal concept indicating a failure to act with the prudence that a reasonable person would exercise under the same circumstances.

Conducting Business

The act of engaging in activities, operations, or transactions that relate to the buying or selling of goods or services.

Misconduct

Improper or unlawful behavior by a person in a professional or official capacity.

Partnership Business

A type of business organization in which two or more individuals share ownership, profits, and liabilities.