If anyone can shed any light on where I am going wrong, I would be very grateful!



I have prepared this adjusted trial balance, but when I prepare an Income statement I cannot get the correct net income amount of $4,400

Adjusted Trial Balance
May 31, 2006
Cash $2,500
Supplies $900
Prepaid Insurance $2,200
Land $15,000
Lodge $70,000
Furniture $16,800
Accounts Payable $5,300
Unearned Rent $7,100
Mortgage Payable $35,350
Common Stock $60,000
Dividends $1,000
Rent Revenue $6,700
Advertising Expense $500
Salaries Payable $800
Salaries Expense $3,800
Supplies Expense $1,000
Utilities Expense $1,000
Accumulated Depreciation - Lodge $200
Accumulated Depreciation - Furniture $250
Depreciation Expense - Lodge $200
Depreciation Expense - Furniture $250
Insurance Expense $200
Interest Expense $350
$115,700 $115,700


Here is my incorrect Income Statement which is meant to result in a net income of $4400


Rent Revenue $6,700
Advertising Expense $500

Salaries Expense $3,800
Supplies Expense $1,000
Utilities Expense $1,000

Depreciation Expense - Lodge $200
Depreciation Expense - Furniture $250
Insurance Expense $200
Interest Expense $350
$7,300

Rent Revenue $6,700

Advertising Expense $500
Salaries Expense $3,800
Supplies Expense $1,000
Utilities Expense $1,000
Depreciation Expense - Lodge $200
Depreciation Expense - Furniture $250
Insurance Expense $200
Interest Expense $350

Total Expenses = 7,300

Net Loss = (600)



If it is suppose to be a Net Income of 4,400, then you have made a mistake with your adjusted trial balance numbers.

Thank you for your help... I appreciate it.