Paid wages of $1,600 for the current period (example).Borrowed $8,000 cash from local bank using a short-term note.Purchased $3,200 of equipment on credit.Earned $640 of sales revenue; collected cash.Received $1,280 of utilities services, on credit.Earned $2,700 of service revenue, on credit.Paid $480 cash on account to a supplier.Incurred $110 of travel expenses; paid cash.Earned $640 of service revenue; collected half in cash, with balance on credit.Collected $180 cash from customers on account.Incurred $460 of advertising costs; paid half in cash, with balance on credit.how would you come up with the net income for this? keeps saying incorrect

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Asked Jan 30, 2019
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Paid wages of $1,600 for the current period (example).
Borrowed $8,000 cash from local bank using a short-term note.
Purchased $3,200 of equipment on credit.
Earned $640 of sales revenue; collected cash.
Received $1,280 of utilities services, on credit.
Earned $2,700 of service revenue, on credit.
Paid $480 cash on account to a supplier.
Incurred $110 of travel expenses; paid cash.
Earned $640 of service revenue; collected half in cash, with balance on credit.
Collected $180 cash from customers on account.
Incurred $460 of advertising costs; paid half in cash, with balance on credit.

how would you come up with the net income for this? keeps saying incorrect

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Expert Answer

Step 1

Out of the Ttransactions, three transactions are related to revenues whether cash or credit:

1. Sales revenue  $ 640.

2. Service revenue  $ 2700

3. Service revenue $ 640.

Therefore, total revenue comes out to be $ 3980.

The analysis of transactions reveals three transactions related to expenses in...

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