A company had the following transactions during September, the first month of its operations: • Issued 20,000 shares of common stock in exchange for $560,000. • Purchased equipment for $280,000, using a $140,000 cash down payment and signing a note payable for the balance. • Received $1,400 from a customer for services to be performed in November. • Made a $42,000 payment on the note payable from the purchase of the land. • Total monthly sales: Cash sales $70,000 Credit Sales (Acct. Receivable): $25,200 • Purchased supplies on credit for $32,200. . Collected $11,200 from customers on account. • Paid $3,500 for September employee wages. • Received a utility bill for $700 which will be paid next month. What is net income for the month of September? Select one: O O O O a. $97,300 b. $91,000 c. $102,200 d. $216,300 e. $108,500

A company had the following transactions during September, the first month of its operations: • Issued 20,000 shares of common stock in exchange for $560,000. • Purchased equipment for $280,000, using a $140,000 cash down payment and signing a note payable for the balance. • Received $1,400 from a customer for services to be performed in November. • Made a $42,000 payment on the note payable from the purchase of the land. • Total monthly sales: Cash sales $70,000 Credit Sales (Acct. Receivable): $25,200 • Purchased supplies on credit for $32,200. . Collected $11,200 from customers on account. • Paid $3,500 for September employee wages. • Received a utility bill for $700 which will be paid next month. What is net income for the month of September? Select one: O O O O a. $97,300 b. $91,000 c. $102,200 d. $216,300 e. $108,500

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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