A company had the following transactions during September, the first month of its operations: Issued 20,000 shares of common stock in exchange for $400,000. Purchased equipment for $200,000, using a $100,000 cash down payment and signing a note payable for the balance. Received $1,000 from a customer for services to be performed in November. Made a s30,000 payment on the note payable from the purchase of the land. Total monthly sales: Cash sales s50,000 Credit Sales (Acct. Receivable): $18,000 Purchased supplies on credit for $23,000. Collected $8,000 from customers on account. Paid $2,500 for September employee wages. Received a utility bill fo $500 which will be paid next month. What is net income for the month of September? Select one: O a. 154,500 O b.77,500 C. 65,000 d. 69,500 72 000

A company had the following transactions during September, the first month of its operations: Issued 20,000 shares of common stock in exchange for $400,000. Purchased equipment for $200,000, using a $100,000 cash down payment and signing a note payable for the balance. Received $1,000 from a customer for services to be performed in November. Made a s30,000 payment on the note payable from the purchase of the land. Total monthly sales: Cash sales s50,000 Credit Sales (Acct. Receivable): $18,000 Purchased supplies on credit for $23,000. Collected $8,000 from customers on account. Paid $2,500 for September employee wages. Received a utility bill fo $500 which will be paid next month. What is net income for the month of September? Select one: O a. 154,500 O b.77,500 C. 65,000 d. 69,500 72 000

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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