Smiles Entertainment Had the Following Accounts and Balances at December

question 125

Multiple Choice

Smiles Entertainment had the following accounts and balances at December 31: $\begin{array}{c}\begin{array}{|l|} \hline \text { Account}\\ \hline \text { Cash}\\ \hline \text { Accounts Receivable}\\ \hline \text { Prepaid Insurance}\\ \hline \text {Supplies.}\\ \hline \text {Accounts Payable}\\ \hline \text {Common Stock}\\ \hline \text {Service Revenue}\\\hline \text {Salaries Expense}\\ \hline \text {Utilities Expense}\\ \hline\text { Totals }\\\hline \end{array}\begin{array}{r|r|}\hline \text { Debit } & \text { Credit } \\\hline \$ 10,000 & \\\hline 2,000 & \\\hline 2,400 & \\\hline 1,000 & \\\hline & \$ 5,000 \\\hline & 4,900 \\\hline & 7,000 \\\hline 500 & \\\hline 1,000 & \\\hline \underline{\$ 16,900} & \underline{\$ 16,900} \\\hline \end{array}\end{array}$


Using the information in the table, calculate the company's reported net income for the period.

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Definitions:

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual funds to represent the per-share/unit value of the fund.

Assessment Value

The dollar value assigned to a property for purposes of measuring applicable taxes or insurance premiums.

Investment Company

A business structure, such as a corporation or trust, dedicated to managing the combined investments of various investors in financial markets.

Front-end Loads

Charges or fees that are paid by investors at the time of purchasing shares of a mutual fund or an investment trust.