Prior to Making Any Adjusting Entries, Terra Corporation Had Net

Multiple Choice

Prior to making any adjusting entries, Terra Corporation had net income of $155,100. The following adjusting entries were made: salaries payable, $1,574; interest earned on short-term investments but not yet recorded or collected, $7,268; adjustment to prepaid insurance for $5,538 for an insurance policy that expired during the period; and fees of $586 collected in advance that have now been earned. After recording these adjustments, net income would be

A) $170,084
B) 158,008
C) 155,842
D) 155,836