net income for the twelve months ended at 12/31/2019 of $58,595.

Please consider the following 2 scenarios:

(1) On September 1, 2019 Flash borrowed $65,000 from the local bank at a rate of 6%. The loan is due in nine months and all principal and interest will be paid at maturity (June 1, 2020).

(2) Flash Company makes all Supplies purchases on account from vendor Gordon Industries. As of 1/1/2019 Flash had $2,400 of supplies on hand. During 2019 Flash purchased an additional $24,000 of supplies and made no other entries. On December 31, 2019, at the end of the day (after the offices had closed), Flash counted the supplies and determined that $5,500 of supplies were remaining as of this date.

What is the company's net income after any 12/31/2019 adjusting journal entries resulting from the above 2 scenarios? Answers may be rounded to the nearest $1.

	A.	$53,762
	B.	$51,470
	C.	None of the answer choices provided are correct.
	D.	$59,962
	E.	$36,395
	F.	$60,395

Ref. No 1 Ref. No 17 18 2 3 19 4 20 5 21 6 22 7 23 8 Account Description Cash $26,045 Accounts Receivable 16,000 Employee Note Receivable 7,000 Supplies 2,400 Prepaid Advertising Expense 17,800 Prepaid Insurance Expense 9,745 Vehicle 55,000 Equipment 125,000 Accumulated Depreciation 82,995 Accounts Payable- Gordon Industries 4,400 Dividend Payable 9,000 Interest Payable 0 New Customer Advance 9,000 Rent Payable 0 Salaries Payable 0 Utilities Payable 0 24 25 Account Description Note Payable $65,000 Contributed Capital 50,000 Retained Earnings 12,000 Dividends 32,000 Service Fee Revenue 240,000 Gain on asset disposal 5,115 Advertising Expense 34,000 Depreciation Expense 0 Insurance Expense 2,240 Interest Income 135 Interest Expense 0 Miscellaneous Expense 965 Rent Expense 28,500 Salaries Expense 92,000 Supplies Expense 24,000 Utilities Expense 4,950 9 10 26 11 27 12 28 13 29 14 30 15 31 16 32