Balance of cole”s enterprise contains revenue | Microeconomics

Balance of cole”s enterprise contains revenue | Microeconomics

Before month-end adjustments are made, the February 28 trial balance of Cole’s Enterprise contains revenue of $11,000 and expenses of $8,900. Adjustments are necessary for the following items:

• Depreciation for February is $1,200.
• Revenue earned but not yet billed is $2,800.
• Accrued interest expense is $900.
• Revenue collected in advance that is now earned is $2,500.
• Portion of prepaid insurance expired during February is $500.

Instructions:

Calculate the correct net income for Cole’s Enterprise for February 3.