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Cedar Grove Bakery started with the following transactions: 1. Invested $30,000 into the business. 2. Purchased supplies worth $3,000 on account. 3. Sold goods for $12,000; these goods cost $7,000. 4. Paid salaries of $2,000. What is Cedar Grove Bakery's net income after these transactions?

Cedar Grove Bakery started with the following transactions: 1. Invested $30,000 into the business. 2. Purchased supplies worth $3,000 on account. 3. Sold goods for $12,000; these goods cost $7,000. 4. Paid salaries of $2,000. What is Cedar Grove Bakery's net income after these transactions?

FINANCIAL ACCOUNTING
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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I need the correct answer to this financial accounting problem using the standard accounting approach.

Cedar Grove Bakery started with the following transactions: 1. Invested $30,000 into the business. 2. Purchased supplies worth $3,000 on account. 3. Sold goods for $12,000; these goods cost $7,000. 4. Paid salaries of $2,000. What is Cedar Grove Bakery's net income after these transactions?
Transcribed Image Text:Cedar Grove Bakery started with the following transactions: 1. Invested $30,000 into the business. 2. Purchased supplies worth $3,000 on account. 3. Sold goods for $12,000; these goods cost $7,000. 4. Paid salaries of $2,000. What is Cedar Grove Bakery's net income after these transactions?
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