Determine the net income the six-month period ending June 30, 2021
Hundred reported the following transactions in the first two quarters of 2021:
· Dividends of 300,000 were received on February 14.
· Rent of 150,000, which is for a ten-month period starting March 1, was paid in May 1
· Equipment with a carrying amount of 400,000 on January 1 was classified as held for sale on January 12. Impairment gain of 100,000 resulted from this transaction.
· Advertising costs of 240,000 was paid in February 23. This would cover advertising and marketing campaigns of the company for 15 months starting February 1, 2021.
· Annual sales are estimated to amount 15 million. Sales for the first quarter is 3 million while sales for the second quarter was 4.8 million
· Costs of sales in the first quarter and the second quarter amounts to 1.5 million and 3 million respectively.
· Annual salaries are estimated at 1 million
· Other operating expenses for the first and the second quarters were 200,000 and 350,000 respectively.
Determine the net income the six-month period ending June 30, 2021
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