The Unadjusted Net Income on the Income Statement Was $41,800

question 57

Multiple Choice

The unadjusted net income on the income statement was $41,800. After journalizing and posting the adjusting entry for the $600 of prepaid advertising that expired and $1,600 in supplies used during the year, the adjusted net income is:

• A)$41,800.
• B)$39,600.
• C)$40,200.
• D)$41,200.

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Definitions:

Ending Inventory Balance

The value of unsold goods that a company holds at the end of an accounting period.

Cost Of Goods Sold

The total direct expenses related to producing goods sold by a business.

Net Income

The profit a company has after deducting all its expenses from its total revenue.

Unit Costs

The cost incurred to produce, purchase, or supply one unit of a product or service, calculated by dividing total costs by the number of units produced or purchased.