**Stockton Company Adjusted Trial Balance****December 31**| Account | Amount ||-------------------------------|---------|| **Cash** | 5,703 || **Accounts Receivable** | 2,850 || **Prepaid Expenses** | 696 || **Equipment** | 14,406 || **Accumulated Depreciation** | 10,590 || **Accounts Payable** | 1,436 || **Notes Payable** | 5,117 || **Common Stock** | 1,000 || **Retained Earnings** | 2,417 || **Dividends** | 610 || **Fees Earned** | || **Wages Expense** | 7,599 || **Rent Expense** | 2,325 || **Utilities Expense** | 808 || **Depreciation Expense** | 421 || **Miscellaneous Expense** | 226 || **Totals** | 28,159 |The adjusted trial balance for Stockton Company on December 31 showcases various accounts with their respective amounts. The total debits and credits both balance at 28,159. **Determine the net income (loss) for the period:**- a. **Net income $3,095**- b. **Net loss $3,095**- c. **Net loss $3,705**- d. **Net income $3,705**This educational sample presents an accounting scenario requiring students to analyze and calculate the net income (or loss) using the provided adjusted trial balance data.

Solution: - Computation of the net income(loss) for the period (Stockton company): -

Answered: Determine the net income (loss) for the…

Determine the net income (loss) for the period. Oa. Net income $3,095 Ob. Net loss $3,095 Oc. Net loss $3,705 Od. Net income $3,705

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

**Stockton Company Adjusted Trial Balance**

**December 31**

| Account | Amount |
|-------------------------------|---------|
| **Cash** | 5,703 |
| **Accounts Receivable** | 2,850 |
| **Prepaid Expenses** | 696 |
| **Equipment** | 14,406 |
| **Accumulated Depreciation** | 10,590 |
| **Accounts Payable** | 1,436 |
| **Notes Payable** | 5,117 |
| **Common Stock** | 1,000 |
| **Retained Earnings** | 2,417 |
| **Dividends** | 610 |
| **Fees Earned** | |
| **Wages Expense** | 7,599 |
| **Rent Expense** | 2,325 |
| **Utilities Expense** | 808 |
| **Depreciation Expense** | 421 |
| **Miscellaneous Expense** | 226 |
| **Totals** | 28,159 |

The adjusted trial balance for Stockton Company on December 31 showcases various accounts with their respective amounts. The total debits and credits both balance at 28,159.

**Determine the net income (loss) for the period:**

- a. **Net income $3,095**
- b. **Net loss $3,095**
- c. **Net loss $3,705**
- d. **Net income $3,705**

This educational sample presents an accounting scenario requiring students to analyze and calculate the net income (or loss) using the provided adjusted trial balance data.

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