Before Any Month-End Adjustments Are Made, the Net Income of Lawrence

Multiple Choice

Before any month-end adjustments are made, the net income of Lawrence Company is $550,000. However, the following adjustments are necessary: office supplies used, $35,000; services performed for clients but not yet recorded or collected, $12,300; interest accrued on note payable to bank, $14,100. After adjusting entries are made for the items listed above, Lawrence Company's net income would be:

A) $541,400.
B) $488,600.
C) $583,200.
D) $513,200.