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Jeff Jackson opened Jackson's Repairs on March 1 of the current year.During March,the following transactions occurred:
1.Jackson invested $25,000 cash in the business in exchange for common stock.
2.Jackson contributed $100,000 of equipment to the business.
3.The company paid $2,000 cash to rent office space for the month of March.
4.The company received $16,000 cash for repair services provided during March.
5.The company paid $6,200 for salaries for the month of March.
6.The company provided $3,000 of services to customers on account.
7.The company paid cash of $500 for utilities for the month of March.
8.The company received $3,100 cash in advance from a customer for repair services to be provided in April.
9.The company paid $5,000 in cash dividends.
Based on this information,net income for March would be:
A) $10,300.
B) $13,400.
C) $5,300.
D) $8,400.
E) $13,500.
Net Income
The net income of a business once all costs and taxes are subtracted from its revenues.
Transactions
Economic events that require recording in the financial statements because they affect assets, liabilities, or equity.
Common Stock
A type of equity security representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.
- Gain proficiency in determining net income from available accounting information.
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Learning Objectives
- Gain proficiency in determining net income from available accounting information.
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