Joe Jackson opened Jackson's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:1. Jackson invested $25,000 cash in the business. 2. Jackson contributed $100,000 of equipment to the corporation. 3. The company paid $2,000 cash to rent office space for the month. 4. The company received $16,000 cash for repair services provided during March. 5. The company paid $6,200 for salaries for the month. 6. The company provided $3,000 of services to customers on account. 7. The company paid cash of $500 for monthly utilities. 8. The company received $3,100 cash in advance of providing repair services to a customer. Based on this information, net income for March would be:

Question

Business

Monkey

14 November, 02:19

Joe Jackson opened Jackson's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:1. Jackson invested $25,000 cash in the business. 2. Jackson contributed $100,000 of equipment to the corporation. 3. The company paid $2,000 cash to rent office space for the month. 4. The company received $16,000 cash for repair services provided during March. 5. The company paid $6,200 for salaries for the month. 6. The company provided $3,000 of services to customers on account. 7. The company paid cash of $500 for monthly utilities. 8. The company received $3,100 cash in advance of providing repair services to a customer. Based on this information, net income for March would be:

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Answers (1)

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Francisco · Answer 1

Answer: $10,300

Explanation:

Total expenses = Rent Expense + Utility expense + Salaries Expense

= $2,000 + $500 + $6,200

= $8,700

Revenue from Repair Service = 16,000 cash received + 3,000 provided on account

= $16,000 + $3,000

= $19,000

Net income = Revenue from Repair Service - Total expenses

= $19,000 - $8,700

= $10,300