Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.

Determine the net income (loss)for the period.
A)Net Income $9,250
B)Net Loss $790
C)Net Loss $5,670
D)Net Income $3,580

Question

Use the information in the adjusted trial balance for Stockton Company to answer the questions that follow.

Determine the net income (loss)for the period.
A)Net Income $9,250 
B)Net Loss $790 
C)Net Loss $5,670 
D)Net Income $3,580

Quizplus · Accepted Answer

To calculate the net income (loss), we need to find the difference between total revenues and total expenses. From the adjusted trial balance, the total revenues are $46,480 and the total expenses are $42,900. Therefore, the net income is:

Net Income = Total Revenues - Total Expenses
Net Income = $46,480 - $42,900
Net Income = $3,580

Hence, the correct answer is D.

Use the Information in the Adjusted Trial Balance for Stockton