Unadjusted net income equals $5,500. Calculate what net income will be after the following adjustments: 1. Salaries
Question:
Unadjusted net income equals $5,500. Calculate what net income will be after the following adjustments:
1. Salaries payable to employees, $510
2. Interest due on note payable at the bank, $90
3. Unearned revenue that has been earned, $850
4. Supplies used, $200
Step by Step Answer:
5550 5...View the full answer
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
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