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The following events apply to East Italia Industries, for the 2020 accounting period, its first year of operations: 1) The business issued $60,000 of common stock to its stockholders. 2) Services were provided to customers for $27,000 cash. 3) Services were provided to customers for $16,000 on account. 4) The business received $26,000 cash from a Notes Payable. 5) Operating expenses of $27,000 were incurred and paid in cash. Calculate the amount of net income at the end of 2020.

The following events apply to East Italia Industries, for the 2020 accounting period, its first year of operations: 1) The business issued $60,000 of common stock to its stockholders. 2) Services were provided to customers for $27,000 cash. 3) Services were provided to customers for $16,000 on account. 4) The business received $26,000 cash from a Notes Payable. 5) Operating expenses of $27,000 were incurred and paid in cash. Calculate the amount of net income at the end of 2020.

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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The following events apply to East Italia Industries, for the 2020 accounting period, its first year of operations: 1) The business issued $60,000 of common stock to its stockholders. 2) Services were provided to customers for $27,000 cash. 3) Services were provided to customers for $16,000 on account. 4) The business received $26,000 cash from a Notes Payable. 5) Operating expenses of $27,000 were incurred and paid in cash. Calculate the amount of net income at the end of 2020.
Transcribed Image Text:The following events apply to East Italia Industries, for the 2020 accounting period, its first year of operations: 1) The business issued $60,000 of common stock to its stockholders. 2) Services were provided to customers for $27,000 cash. 3) Services were provided to customers for $16,000 on account. 4) The business received $26,000 cash from a Notes Payable. 5) Operating expenses of $27,000 were incurred and paid in cash. Calculate the amount of net income at the end of 2020.
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