A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $24,000. The business purchases supplies on account $600. The business purchases furniture on account $2,500. The business renders services to various clients on account totaling $8,000. The business pays salaries $2,200. The business pays this month’s rent $4,000. The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,800. What is total income for the month?

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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A business has the following transactions:

  • The business is started by receiving cash from an investor in exchange for common stock $24,000.
  • The business purchases supplies on account $600.
  • The business purchases furniture on account $2,500.
  • The business renders services to various clients on account totaling $8,000.
  • The business pays salaries $2,200.
  • The business pays this month’s rent $4,000.
  • The business pays for the supplies purchased on account.
  • The business collects from one of its clients for services rendered earlier in the month $1,800.

What is total income for the month?

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