Smiles Entertainment Had the Following Accounts and Balances at December

question 7

Multiple Choice

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

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Definitions:

Musical Instruments

Devices constructed or used for the purpose of making musical sounds.

Substance P

A neuropeptide involved in pain perception and the inflammatory response within the body.

Endorphin

Natural peptides produced by the brain that act as neurotransmitters to reduce pain perception and lead to feelings of euphoria.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, also involved in the regulation of mood, sleep, and appetite.