Question Content AreaUse the adjusted trial balance for Stockton Company to answer the question that follow.Stockton CompanyAdjusted Trial BalanceDecember 31Line Item DescriptionAmountAmountCash7,530 Accounts Receivable2,100 Prepaid Expenses700 Equipment13,700 Accumulated Depreciation 1,100Accounts Payable 1,900Notes Payable 4,300Common Stock 1,000Retained Earnings 12,940Dividends790 Fees Earned 9,250Wages Expense2,500 Rent Expense1,960 Utilities Expense775 Depreciation Expense250 Miscellaneous Expense185 Total30,49030,490Determine the net income (loss) for the period.

The income statement is prepared to record the revenues and expenses of the current period. The net income is calculated as excess of revenues over the total expenses. INCOME STATEMENT Fees earned 9,250 Less: expenses Wages expenses 2,500 Rent expense 1,960 Utilities expenses 775 Depreciation expense 250 Miscellaneous expenses 185 Total expenses (5,670) Net income 3,580 The net income for the period is calculated as 3,580.

Answered: Use the adjusted trial balance for…

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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Use the adjusted trial balance for Stockton Company to answer the question that follow.

Stockton CompanyAdjusted Trial BalanceDecember 31

Line Item Description	Amount	Amount
Cash	7,530
Accounts Receivable	2,100
Prepaid Expenses	700
Equipment	13,700
Accumulated Depreciation		1,100
Accounts Payable		1,900
Notes Payable		4,300
Common Stock		1,000
Retained Earnings		12,940
Dividends	790
Fees Earned		9,250
Wages Expense	2,500
Rent Expense	1,960
Utilities Expense	775
Depreciation Expense	250
Miscellaneous Expense	185
Total	30,490	30,490

Determine the net income (loss) for the period.

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