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Sutton Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted
Sutton Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as at the end of the company's fiscal year, December 31, 2017: Credit Debit $ 60,000 13,000 800 1,000 20,000 $ 12,000 Account Titles Cash Accounts receivable Service supplies inventory Prepaid insurance Service trucks Accumulated depreciation, service trucks Other assets Accounts payable Note payable (three years; 5% due each December 31) Contributed capital (5,000 shares outstanding) Retained earnings Service revenue Other expenses, excluding income tax 11,200 3,000 20,000 28,200 7,500 77,000 41,700 Totals $ 147,700 $ 147,700 Data not yet recorded at December 31, 2017, include the following: a. Supplies inventory on December 31, 2017, reflecting $200 remaining on hand. b. Insurance expired during 2017. $400. c. Depreciation expense for 2017, $4,000. d. Wages earned by employees not yet paid on December 31, 2017, $1,100. e. Income tax expense, $7,350. 4. Compute the net earnings for the year, assuming that you did not make an adjustment to the balance of the supplies inventory account. (Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)
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