Borrowed $125,000 from a bank, signing a short-term note payable.Provided $102,600 in service to customers, with $97,400 on account and the rest received in cash.Purchased equipment for $175,000 in cash.Incurred and paid employee wages of $2,250.Received $745 on account from a customer.Incurred and paid $4,200 cash for travel costs during the year.Paid $8,000 cash on accounts payable.Incurred $22,500 in utility expenses during the year, of which $16,900 was paid in cash and the rest owed on account.Need help finding preliminary net income

Question
Asked Jan 30, 2019
114 views

Borrowed $125,000 from a bank, signing a short-term note payable.
Provided $102,600 in service to customers, with $97,400 on account and the rest received in cash.
Purchased equipment for $175,000 in cash.
Incurred and paid employee wages of $2,250.
Received $745 on account from a customer.
Incurred and paid $4,200 cash for travel costs during the year.
Paid $8,000 cash on accounts payable.
Incurred $22,500 in utility expenses during the year, of which $16,900 was paid in cash and the rest owed on account.

Need help finding preliminary net income

check_circle

Expert Answer

Step 1

The first step is to compute the Total revenues during the year by analysing the transactions.

On analysing, it has been observed that only one transaction is related to service revenue earned of the amount of $ 102600.

The next step is to compute the Total expenses of the year by analysing the transaction.

On analysing the transaction, three transactions r...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Patents are asset, liability, quity, revenue or expense?

A: Assets: These are the resources owned and controlled by business as a result of a past transaction o...

question_answer

Q: Stratus Inc. purchased equipment for $18,500 and received an invoice with terms 4/10, 3/30, n/45. If...

A: Stratus Incorporation purchased equipment and it had terms 4/10, 3/30, n/45. In this case, the compa...

question_answer

Q: Kyle and Liza are married and under 65 years of age. During 2018, they furnish more than half of the...

A: Dependency exemption: The deduction allowed for the care and maintenance of qualifying dependent is ...

question_answer

Q: CVP Analysis; Commissions; Ethics Lionel Corporation manufactures pharmaceutical products sold throu...

A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit t...

question_answer

Q: Most Company has an opportunity to invest in one of two new projects. Project Y requires a $320,000 ...

A: We can calculate the net present value as follows : 

question_answer

Q: I'm having trouble finding the value for the inventory balance as of january 31st for the cost of fi...

A: Finished goods inventory are completely ready for sale after completing the manufacturing process.

question_answer

Q: Cost classifications For each of the following costs, check the column(s) that most likely applies (...

A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the volu...

question_answer

Q: They are going to start a manufacturing company and need help deciding what entity type to choose to...

A: The different types of business entities prevent in an economy are(a)    Sole Proprietorship(b)    P...

question_answer

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, t...

A: 1.a. Compute the last year's CM ratio.