A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $27,646The business purchases supplies on account $994The business purchases furniture on account $4,914The business renders services to various clients on account totaling $7,190The business pays salaries $1,751The business pays this month’s rent $4,389The business pays for the supplies purchased on accountThe business collects from one of its clients for services rendered earlier in the month $1,941What is total net income for the month?

Name: A business has the following transactions: The business is started by
Uploaded: 2024-03-04T10:43:15.000Z
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Description: A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $27,646The business purchases supplies on account $994The business purchases furniture on account $4,914The business re

Solution: Computation of net income for the month is as under:

Answered: A business has the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 19EA: A business has the following transactions: The business is started by receiving cash from an...

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A business has the following transactions:

The business is started by receiving cash from an investor in exchange for common stock $27,646
The business purchases supplies on account $994
The business purchases furniture on account $4,914
The business renders services to various clients on account totaling $7,190
The business pays salaries $1,751
The business pays this month’s rent $4,389
The business pays for the supplies purchased on account
The business collects from one of its clients for services rendered earlier in the month $1,941

What is total net income for the month?

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