Before month-end adjustments are made, the February 28 trial balance of Neutral Milk Hotel contains revenue...

 

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Before month-end adjustments are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $7,000 and expenses of $4,400. Adjustments are necessary for the following items: Depreciation for February is $1,800. Revenue recognized but not yet billed is $2,700. Accrued interest expense is $700. Revenue collected in advance that is now recognized is $2,500. Portion of prepaid insurance expired during February is $400. Calculate the correct net income for Neutral Milk Hotel's Income Statement for February. • . • • Net Income after Adjustments $ Before month-end adjustments are made, the February 28 trial balance of Neutral Milk Hotel contains revenue of $7,000 and expenses of $4,400. Adjustments are necessary for the following items: Depreciation for February is $1,800. Revenue recognized but not yet billed is $2,700. Accrued interest expense is $700. Revenue collected in advance that is now recognized is $2,500. Portion of prepaid insurance expired during February is $400. Calculate the correct net income for Neutral Milk Hotel's Income Statement for February. • . • • Net Income after Adjustments $

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Computation of Net Income after Adjustment Particular Amount Amount Reve... View the full answer