QUESTION 14 135 0 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. Treat 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. Ne Account Description Ref. No Account Description 1 Cash S26,045 17 Note Payable S65,000 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 s Prepaid Advertising Expense 17,800 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 Dividend Payable 9,000 27 Interest Expense 12 Interest Payable 0 28 Miscellaneous Expense 965 13 New Customer Advance 9,000 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 32 Utilities Expense 4.950 Short Cut: using the above unadjusted account balances, Flash has net income for the twelve months ended at 12/31/2019 of $58,595. Please consider the following scenario: Payroll: Flash has 2 full-time employees that are paid on the 1st and 3rd Saturday of each month (see boxed dates below). On January 4, 2020, the company paid $3,800 in total wages for the pay period ending on that day". The business is closed Sunday and Monday. Each employee is paid $190 per day, they each work a 5-day work week (Tuesday-Saturday) receive paid holidays, paid sick days, and never incur overtime. Optional Clarification on payday the employee's paycheck always includes payment for the payday itself. For example, looking at the balow calendar, on the December 21 payday the employees were paid for 10 days (Tuesday, December 10 up to and including Saturday, December 2149). Again, the company is closed Sunday and Monday! Sunday Monday Tuesday Wednesday Thursday Friday Saturday December 1 2 3 4 3 6 7 2019 8 9 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 5-6- January 1 2 2020 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Required: What is the company's net income after any 12/31/2019 adjusting journal entries resulting from the above scenario? Answers may be rounded to the nearest $1. A. None of the answer choices provided are correct. B. $55,881 OC.$56,935 OD. $57,075 O E $54.795 OF $56,315
