The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31,Year 1:

-What is the amount of net income that will be reported on the Year 1 income statement?
A)$2,200
B)$3,200
C)$1,000
D)$200

Question

The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31,Year 1:
 
-What is the amount of net income that will be reported on the Year 1 income statement?
A)$2,200 
B)$3,200 
C)$1,000 
D)$200

Quizplus · Accepted Answer

Net income = Revenue of $3,200 - Expenses of $2,200 = $1,000

The Following Pre-Closing Accounts and Balances Were Drawn from the Records