A business has the following transactions:• The business is started by receiving cash from aninvestor in exchange for common stock $20,000.• The business purchases supplies on account $800.• The business purchases furniture on account $3,000.• The business renders services to various clients onaccount totaling $8,000.• The business pays salaries $2,800.• The business pays this month's rent $3,700.• The business pays for the supplies purchased onaccount.• The business collects from one of its clients forservices rendered earlier in the month $1,600.What is total income for the month?Net income $|

Revenue is the aggregate income amount generated through the sale of services or the goods to the…

A business has the following transactions: • The business is started by receiving cash from an investor in exchange for common stock $20,000. • The business purchases supplies on account $800. • The business purchases furniture on account $3,000. • The business renders services to various clients on account totaling $8,000.

A business has the following transactions: • The business is started by receiving cash from an investor in exchange for common stock $20,000. • The business purchases supplies on account $800. • The business purchases furniture on account $3,000. • The business renders services to various clients on account totaling $8,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A business has the following transactions:
• The business is started by receiving cash from an
investor in exchange for common stock $20,000.
• The business purchases supplies on account $800.
• The business purchases furniture on account $3,000.
• The business renders services to various clients on
account totaling $8,000.
• The business pays salaries $2,800.
• The business pays this month's rent $3,700.
• The business pays for the supplies purchased on
account.
• The business collects from one of its clients for
services rendered earlier in the month $1,600.
What is total income for the month?
Net income $|

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