A company had the following transactions during September, the first month of its operations: Issued 20,000 shares of common stock in exchange for $400,000. Purchased equipment for $200,000, using a $100,000 cash down payment and signing a note payable for the balance. Received $1,000 from a customer for services to be performed in November. Made a s30,000 payment on the note payable from the purchase of the land. Total monthly sales: Cash sales s50,000 Credit Sales (Acct. Receivable): $18,000 Purchased supplies on credit for $23,000. Collected $8,000 from customers on account. Paid $2,500 for September employee wages. Received a utility bill fo $500 which will be paid next month. What is net income for the month of September? Select one: O a. 154,500 O b.77,500 C. 65,000 d. 69,500 72 000
A company had the following transactions during September, the first month of its operations: Issued 20,000 shares of common stock in exchange for $400,000. Purchased equipment for $200,000, using a $100,000 cash down payment and signing a note payable for the balance. Received $1,000 from a customer for services to be performed in November. Made a s30,000 payment on the note payable from the purchase of the land. Total monthly sales: Cash sales s50,000 Credit Sales (Acct. Receivable): $18,000 Purchased supplies on credit for $23,000. Collected $8,000 from customers on account. Paid $2,500 for September employee wages. Received a utility bill fo $500 which will be paid next month. What is net income for the month of September? Select one: O a. 154,500 O b.77,500 C. 65,000 d. 69,500 72 000
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 19EB: A business has the following transactions: A. The business is started by receiving cash from an...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning