Smiles Entertainment Had the Following Accounts and Balances at December

question 86

Multiple Choice

Smiles Entertainment had the following accounts and balances at December 31: $\begin{array}{l}\begin{array}{l} \text {Account}\\\text { Cash } \\\text { Accounts Receival } \\\text { Prepaid Insurance } \\\text { Supplies }\\\text {Accounts Payable} \\\text {Common Stock} \\\text {Retained Earnings} \\\text {Service Revenue} \\\text {Salaries Expense} \\\text {Utilities Expense} \\\text {Totals} \\\end{array}\begin{array}{ll} \text {Debit }&\text {Credit}\\\$ 10,000 \\2,000 \\2,400 \\1,000\\& \$ \quad 5,000 \\&4,000\\&900\\&7,000\\500 \\\underline {1,000}& \underline { \quad\quad\quad\quad } \\ \$ 16,900& \$ 16,900\end{array}\end{array}$ Using the information in the table, calculate the company's reported net income for the period.

• A) $1,100.
• B) $4,000.
• C) $8,500
• D) $10,400.
• E) $5,500.

---

Definitions:

Free-Floating Anxiety

Anxiety that is not linked to any specific situation or object and is a persistent feeling of uneasiness or dread.

Realistic Source

A credible or authentic origin or means that provides information or material.

DSM-5

The Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.

Checklist

A written or electronic list of items to be noted, checked off, or remembered.