1. Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Smith invested $25,000 in cash in the business. 2. Smith contributed $100,000 of equipment to the business. 3. The company paid $2,000 in 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. 9. Smith withdrew $5,000 for his personal use from the company. Based on this information, the net profit for March would be ... A. $10,300. B. $13,400. C. $5,300. D. $8,400.
1. Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Smith invested $25,000 in cash in the business. 2. Smith contributed $100,000 of equipment to the business. 3. The company paid $2,000 in 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. 9. Smith withdrew $5,000 for his personal use from the company. Based on this information, the net profit for March would be ... A. $10,300. B. $13,400. C. $5,300. D. $8,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following
transactions occurred and were recorded in the company's books:
1. Smith invested $25,000 in cash in the business.
2. Smith contributed $100,000 of equipment to the business.
3. The company paid $2,000 in 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.
9. Smith withdrew $5,000 for his personal use from the company.
Based on this infomation, the net profit for March would be ...
A. $10,300.
B. $13,400.
C. $5,300.
D. $8,400.
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