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(Solution document) The Cone Company has prepared a trial balance that includes the following:


The Cone Company has prepared a trial balance that includes the following: accounts receivable?$19,000, inventory?$30,000, cost of goods sold?$72,000, sales revenue?$191,000, prepaid rent?$8,000, salary payable?$12,000, rent expense?$23,000, salary expense?$34,000, and dividends paid?$7,000. What should be reported as net income for the period?

a. $50,000 b. $55,000 c. $62,000 d. $70,000

10. A company pays $40,000 to rent a building for forty days. After nineteen days, financial statements are to be prepared. If the company originally recorded the $40,000 payment in rent expense, which of the following adjusting entries should be made prior to producing financial statements.

a. Debit rent expense $19,000, and credit prepaid rent $19,000.

b. Debit prepaid rent $21,000, and credit rent expense $21,000.

c. Debit prepaid rent $19,000, and credit rent expense $19,000.

d. Debit rent expense $21,000, and credit prepaid rent $21,000.


Explain Please

 







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