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QUESTION 62
The following balances were taken from the ADJUSTED TRIAL BALANCE of Terrapin Corp. for the fiscal year ending December 31, 2003.
Cash
8, 500
Accounts Receivable
25,000
Prepaid Rent
2,000
Equipment
42, 000
Accumulated Depreciation - Equipment
5, 500
Accounts Payable
7,000
Unearned Revenue
1, 000
Wages Payable
2,000
Common Stock
30,000
Retained Earnings, 1/1/2003
5, 000
Dividends
1, 000
Service Revenue
30, 000
Notes Payable, Due 5/1/2005
21, 500
Rent Expense
3,000
Interest Expense
1, 000
Wages Expense
17, 000
Depreciation Expense -- Equipment
3, 500
Notes Payable, Due 5/1/2004
1, 000
Each of these accounts has the normal debit or credit balance.
The NET INCOME for the year is:
O
$ 4,500
O
$ 6,500
$ 5,500
O
$ 30,000
O
None of the above

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