Reference no: EM132651700

Question - R2-Uz Company's December 31, 2026 unadjusted trial balance reported the following accounts:

Accounts Payable $37,000

Accounts Receivable $61,000

Accumulated Depreciation $33,000

Cash $20,000

Common Stock $45,000

Cost of Goods Sold $47,000

Depreciation Expense $16,000

Equipment $71,000

Income Tax Expense $12,000

Inventory $70,000

Investment Revenue $65,000

Mortgage Payable $40,000

Retained Earnings $42,000 (at January 1, 2026)

Sales Revenue $95,000

Supplies $26,000

Trademark $22,000

Unearned Revenue $19,000

Wage Expense $31,000

R2-Uz Company has not yet recorded an adjusting entry to record $7,000 of supplies that were used up during 2026.

Required - Calculate the amount of net income that R2-Uz Company would report in its 2026 income statement after the appropriate adjusting entry is made to record the used up supplies.