Question

The unadjusted net income on the income statement was $23,760. after journalizing and posting the adjusting entries for the $1,620 of supplies used and $3,700 of depreciation on the company's equipment for the year, the adjusted net income is:

O $18,440
O $20,060
O $22,140

Answer 1

To calculate the adjusted net income, subtract the adjusting entries for supplies used ($1,620) and equipment depreciation ($3,700) from the unadjusted net income of $23,760, resulting in an adjusted net income of $18,440. Therefore correct option is A

Step-by-step explanation:

The student's question concerns the calculation of adjusted net income after taking into account specific adjusting entries for supplies used and depreciation on the company's equipment.

To determine the adjusted net income, we start with the unadjusted net income given, which is $23,760.

Then, we subtract the total amount of the adjustments from the unadjusted net income. In this case, the adjustments are $1,620 for supplies used and $3,700 for equipment depreciation.

The combined adjustment is $1,620 + $3,700 = $5,320.

Once we subtract the total adjustments from the unadjusted net income, we get the adjusted net income as follows:

$23,760 - $5,320 = $18,440.

Therefore, the adjusted net income after posting the adjusting entries for supplies and depreciation is $18,440.