cincinnati law institute reported the following accounts and balances at december 31: account debit credit…

cincinnati law institute reported the following accounts and balances at december 31: account debit credit cash $12,000 accounts receivable 2,400 prepaid insurance 3,200 supplies 1,400 accounts payable $6,000 common stock 5,000 retained earnings 1,100 service revenue 9,000 salaries expense 700 utilities expense 1,400 totals $21,100 $21,100 using the information in the table, calculate the companys reported net income for the period. $4,600. $9,000. 6,900. $1,500.

cincinnati law institute reported the following accounts and balances at december 31: account debit credit cash $12,000 accounts receivable 2,400 prepaid insurance 3,200 supplies 1,400 accounts payable $6,000 common stock 5,000 retained earnings 1,100 service revenue 9,000 salaries expense 700 utilities expense 1,400 totals $21,100 $21,100 using the information in the table, calculate the companys reported net income for the period. $4,600. $9,000. 6,900. $1,500.

Answer

Explanation:

Step1: Recall net - income formula

Net income = Service Revenue - Salaries Expense - Utilities Expense

Step2: Identify revenue and expenses

Service Revenue = $9,000$, Salaries Expense = $700$, Utilities Expense = $1,400$

Step3: Calculate net income

Net income = $9000-(700 + 1400)=9000 - 2100=6900$

Answer:

$6,900$