Lita Lopez started Biz Consulting, a new business, and completed the following transactions during itsfirst year of operations.a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.b. The company purchased an office suite for $40,000 cash.c. The company purchased office equipment for $15,000 cash.d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.e. The company paid a local newspaper $500 cash for printing an announcement of the office’s opening.f. The company completed a financial plan for a client and billed that client $2,800 for the service.g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.h. Lita Lopez withdrew $3,275 cash from the company for personal use.i. The company received $1,800 cash as partial payment from the client described in transaction f.j. The company made a partial payment of $700 cash on the equipment purchased in transaction d.k. The company paid $1,800 cash for the office secretary’s wages for this period. Required Determine the company’s net income.
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its
first year of operations.
a. Lita Lopez invested $70,000 cash and office equipment valued at $10,000 in the company.
b. The company purchased an office suite for $40,000 cash.
c. The company purchased office equipment for $15,000 cash.
d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
e. The company paid a local newspaper $500 cash for printing an announcement of the office’s opening.
f. The company completed a financial plan for a client and billed that client $2,800 for the service.
g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
h. Lita Lopez withdrew $3,275 cash from the company for personal use.
i. The company received $1,800 cash as partial payment from the client described in transaction f.
j. The company made a partial payment of $700 cash on the equipment purchased in transaction d.
k. The company paid $1,800 cash for the office secretary’s wages for this period. Required Determine the company’s net income.
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