PLEASE SHOW WORK

Journey Expedition Company provides customized guided expeditions for small groups of travelers. Treat each Journey Expedition Company exam problem as stand alone. Journey provides below a selected portion of the company's 12/31/20X0 account balances all of which are normal. Account # 15 has been intentionally omitted. Journey purchases 100% of its supplies on account from a single vendor Camping Supplies, Inc (CSI). Given the custom nature of its travel Journey requires customers to pay a large deposit in advance of the trip and at the time the deposit is collected, Journey increases "trip deposits" a deferred revenue (account #14). 0 17,400 11,200 10,000 0 17,000 9,400 1 Cash 2 Accounts Receivable 3 Prepaid Insurance Expense 4 Prepaid Advertising Expense 5 Supplies 6 Office Equipment 7 Expedition Equipment S Vehicles 9 Accumulated Depreciation 10 Accounts Payable CSI 11 Rent Payable 20,000 60,000 160,000 71,000 5,000 0 12 Utilities Payable 13 Wages Payable 14 Trip Deposits 15 Travel Revenue 16 Advertising Expense 17 Depreciation Expense 18 Insurance Expense 19 Rent Expense 20 Supplies Expense 21 Utilities Expense 22 Wage Expense 50.400 0 1,500 24,000 0 4,100 115,000 For purposes of this question only (i.e., this number may vary in different questions) assume that Journey reports net income for the twelve months ended 12/31/20X0 of $125,000 which is before considering the below items: 1. During the twelve months ended 12/31/20X0, journey collected $17,000 in trip deposits from customers. As of 12/31/20X0 75% of the trips have happened and only 25% of the trip deposits collected in 20X0 relate to 20x1 travel. 2. Journey pays its employees weekly and each Monday they are paid for the prior five-day work week ending on the previous Friday. Payroll costs Journey $350 per day in total, employees work Monday-Friday, receive paid holidays and don't receive overtime. The first payroll for 20x1 landed on January 5 (below) and on this date Journey paid $1,750 for the prior 5-day work week. Jan 5, 20x1 Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday $1,750 What net income will Journey report for the twelve months ended 12/31/20X0 after considering the above 2 items? O $127,500 O $136,700 O $128,200 O $127,850 O $136,000