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Problem 1: Before any month-end adjustments are made, the net income of Russell Company is $38,000. However, the following adjustments are necessary: office supplies used, $3,160; services performed for clients but not yet recorded or collected, $3,040; interest accrued on a note payable to bank, $3,640. After adjusting entries are made for the items listed above, Russell Company's net income would be:
Multiple Choice
Option 1: $38,000.Option 2: $34,240.Option 3: $41,160.Option 4: $44,200.
Problem 2: A worksheet consists of all of the following except:
Option 1: A trial balance.Option 2: Adjusting entries.Option 3: An adjusted trial balance.Option 4: Transaction entries.
Financial Statement Analysis and Preparation
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