Question

Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton Company Adjusted Trial Balance December 31 Account No. Debit Balances Credit Balances Cash 11 6,394 Accounts Receivable 12 2,830 Prepaid Expenses 13 705 Equipment 18 13,643 Accumulated Depreciation 19 1,315 Accounts Payable 21 1,665 Notes Payable 22 4,904 Bob Steely, Capital 31 13,979 Bob Steely, Drawing 32 850 Fees Earned 41 6,086 Wages Expense 51 2,185 Rent Expense 52 740 Utilities Expense 53 345 Depreciation Expense 54 204 Miscellaneous Expense 59 53 Totals 27,949 27,949 Use the adjusted trial balance for Stockton Company. Determine the net income (loss) for the period. a.Net loss is $2,559.

Answer 1

Answer:

$2,559

Explanation:

The computation of the net income or net loss is shown below:

= Fees earned - wages expense - rent expense - utilities expense - depreciation expense - miscellaneous expense

= $6,086 - $2,185 - $740 - $345 - $204 - $53

= $2,559

Basically we deduct all expenses from the revenues earned so that the net income could come

Therefore, the net income is $2,559