Rojo Equipment, which has an October 31 fiscal year, reports income of $200,000 for the year ended 10/31/20x7. On October 31, Rojo discovers the following:

A $2,000 utilit bill booked on October 30, 20X7, was not paid.

Rojo has a $10,000 note payable with 12% annual interest rate. Payments are due every dix months. The last interest payment was made on Jun 30, 20X7.

Rojo has 4 salaried employees, each paid $800 a week for a Monday-Friday workweek. Paychecks are distributed on Fridays, October 31 is a Thursday.

A. Prepare the adjusting entries required for the year ended October 31, 20X7?

B. What is Rojo's net income for 20X7?