17,800 Clarification - Flash Enterprises Continuing Fact Pattern. You have numerous Flash Enterprises problems that will show up in a random order throughout the exam. Each Flash question is a small selection from a large comprehensive problem. Trest each Flash Enterprise question as stand alone, meaning you should ignore the scenarios that are not mentioned and include in your answer only the specific scenarios requested. Facts Flash Enterprises provides you with the below unadjusted account balances as of 12/31/2019. all of which are normal: Ref. No Account Description Ref. No Account Description $ 1 Cash $26,045 17 Note Payable $65,000 2 Accounts Receivable 16,000 18 Contributed Capital 50,000 3 Employee Note Receivable 7,000 19 Retained Earnings 12.000 4 Supplies 2,400 20 Dividends 32,000 5 Prepaid Advertising Expense 21 Service Fee Revenue 240,000 6 Prepaid Insurance Expense 9,745 22 Gain on asset disposal 5,115 7 Vehicle 55,000 23 Advertising Expense 34,000 8 Equipment 125,000 24 Depreciation Expense 0 9 Accumulated Depreciation 82,995 25 Insurance Expense 2,240 10 Accounts Payable-Gordon Industries 4,400 26 Interest Income 135 11 Dividend Payable 9,000 27 Interest Expense 0 12 Interest Payable 0 28 Miscellaneous Expense 965 13 New Customer Advance 29 Rent Expense 28,500 14 Rent Payable 0 30 Salaries Expense 92,000 15 Salaries Payable 0 31 Supplies Expense 24,000 16 Utilities Payable 0 32 Utilities Expense 4,950 9,000 Short Cut using the above unadjusted account balances, Flash nas net income for the twelve months ended ar 12/31/2019 of $58,595. Please consider the following 4 scenarios (1) Flash requires new customers to pay in advance for services and at the time the cash is collected and recorded Flash also increases the New Customer Advance account (ale #13 above). During 2019, Flash colected advance payments from new customers totaling $9,000 and performed $5,000 of services (related to these customer prepayments) Flash anticipates providing the remaining 54,000 of services in early 2020. (2) Regarding 59,745 of advance payments insurance coverage: 57.765 was paid in late 2018 for an 18 month general business insurance policy effective January 1, 2019 and (ii) $1,960 was paid in August 2019 for a seven-tranth automobile insurance policy effective Sept 1 2019, 3) Regarding S17,800 of advance payments for advertising: $4,050 for a billboard with a 9 month contract (July 1, 2019 March 31, 2020) and ( 513,750 for 55, 30 second radio ads on the local radio station. As of 12/31/2019, 28 of the radio ads had been broadcast while 27 were scheduled to play in 2020, (4) On January 2, 2020 Flash paid the company's landlord, LMN Rentals $3,000 for the December rent. Required. What is the company's net income after any 12/31/2019 adjusting journal entries resulting from the above 4 scenarios2 Answers may be rounded to the nearest 51. O A None of the answer choices provided are correct O B. 542.375 OC. 543,565 OD. 544,585 O E $34.585 OF. 552.080
