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Bantam company calculated its net income to be $38,775 based on the unadjusted trial balance. The following adjusting entries were then made for:

Salaries and wages owed but not yet paid of $395.
Interest earned but not received from investments of $375.
Prepaid insurance premiums amounting to $275 have expired.
Unearned revenue in the amount of $805 has now been earned.

Required:
Determine the amount of net income (loss) that will be reported after the adjustments are recorded.

User Jegan Babu
by
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1 Answer

5 votes

Answer:

the amount of net income or loss is $39,285

Step-by-step explanation:

The computation of the amount of net income or loss is shown below:

= Net income + interest earned + unearned revenue - salaries & wages - prepaid insurance

= $38,775 + $375 + $805 - $395 - $275

= $39,285

hence, the amount of net income or loss is $39,285

The same should be considered and relevant

User The Alchemist
by
8.2k points
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