Question

Given the following adjusted trial balance:

Debit Credit
Cash $1762
Accounts receivable 2224
Inventory 3311
Prepaid rent 91
Equipment 320
Accumulated depreciation-equipment
$55
Accounts payable 87
Unearned service revenue
129
Common stock 218
Retained earnings 7010
Service revenue 390
Interest revenue 59
Salaries and wages expense
170
Travel expense 70
Total $7948
Net income for the year is

Answer 1

The net income for the year is $209

Step-by-step explanation:

Net income: It the income which is left after paying all the expenses.

In the simplest form,

The net income = Total revenue - total expenditure

So, the net income would equal to

= Service revenue + interest revenue - Salaries and wages expense - Travel expense

= $390 + $59 - $170 - $70

= $209

All other items which are presented in the question are related to the balance sheet so these all items would not be considered in the computation part.