Reference no: EM132834185

Question - LNJ Inc. (LNJ) recorded $235,500 in expenses and $313,250 in revenues on its unadjusted trial balance for the year ended April 30, 2020. The following items were recorded in the trial balance:

a) On February 1, 2020, LNJ paid $60,000 for a three-year insurance policy. The entire amount was debited to insurance expense at the time of purchase.

b) On March 1, 2020, LNJ signed a $10,000 90-day note payable with its bank at 7.5% interest. The note payable was recorded on March 1, 2020. NO interest has been paid or recorded on the note.

c) On April 1, 2020, LNJ collected $25,000 from a customer for work to be performed in April and May 2020. By the end of April 2020, LNJ had performed $11,300 of services on the contract. The amount collected was credited to revenue from customers.

d) On April 30, 2020, staff at LNJ counted $1,575 of office supplies on hand. The balance in the office supplies account was $1,850 at April 30, 2020.

e) LNJ subleases some of its office space to a small technology firm. As of April 30, 2020, the monthly rent of $1,200 for April had NOT been collected and only $600 of March's was collected. LNJ records rent as it is collected. LNJ is confident that the rent will be collected in the near term.

Required - Determine LNJ's adjusted net income for the year ended April 30, 2020. Show your calculations.