Q7

The following accounts were taken from Nelson Company's unadjusted trial balance at December 31, 2e25: $56, eee Accounts payable Accounts receivable $6e, eee Advertising expense . $25, eee Building $68, eee $32, eee Cash $77 , eee Common stock . $43, eee Cost of goods sold $18, eee Income tax expense . $47 , eee Inventory . $63, eee Land $54, eee Notes payable . $31, eee Patent . $52, eee Rental revenue . Retained earnings $35, eee (at January 1, 2e25) $84, eee Sales revenue . $29, eee Unearned revenue . Nelson Company has not yet recorded adjusting entries related to the following two items: (1) The unearned revenue relates to a $29, eee payment from a customer received on October 1, 2025 for services to be performed each month for the next eight months. (2) The note payable was a bank loan taken out on May 1, 2025. It is a 9-month, 4% loan. Calculate the net income reported by Nelson Company for 2925 after the appropriate adjusting entries have been recorded and posted.