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Smiles Entertainment had the following accounts and balances at December 31:
| Account | Debit | Credit |
| Cassh | $ 12,100 | |
| Account Receivable | 2,420 | |
| Prepaid Insurance | 3,240 | |
| Supplies | 1,420 | |
| Account Payable | $ 6,050 | |
| Common Stock | 5,050 | |
| Retained Earnings | 1,110 | |
| Service Revenue | 9,100 | |
| Salaries Expense | 710 | |
| Utilities Expense | 1,420 | |
| Totals | $ 21,310 | $ 21,310 |
Using the information in the table, calculate the company’s reported net income for the period.
Multiple Cholce
A. $1.520
B. $4.630
C. $5.340
D. $6.970
♦ Relevant knowledge
Net income is a total net income that is derived from the total expenses from the profit and loss accounts of an enterprise. It is often referred to in the form of net profits. It is calculated by the company to calculate their earnings per share value.
1 Answer