What’s the company’s net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What’s the company’s net income?

Transcribed Image Text:Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operatio
a. Lita Lopez invested $60,000 cash and equipment valued at $33,000 in the company.
b. The company purchased a building for $42,000 cash.
c. The company purchased equipment for $5,300 cash.
d. The company purchased $3,100 of supplies and $1,400 of equipment on credit.
e. The company paid $890 cash for advertising expenses.
f. The company completed a financial plan for a client and billed that client $4,600 for the service.
g. The company designed a financial plan for another client and immediately collected a $8,800 cash fee.
h. L. Lopez withdrew $1,200 cash from the company for personal use.
i. The company received $3,600 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 $2,500 cash for the secretary's wages for this period.
Required:
1. Enter the amount of each transaction on individual items of the accounting equation.
2. Determine the company's net income.

Transcribed Image Text:f.
a.
h.
b.
e.
g.
Balance after a and b
C.
Balance after c
Balance after d
d.
Balance after e
Balance after f
Balance after g
Balance after h
i.
Balance after i
j.
Balance after j
k.
Balance after k
$
Cash
0
+0
0
0
+0
0 +
0+
0 +
+
+
0 +
+
+
0 +
+
+
+
+
+
+
+
+
+
+
$
Recolvable
0
0
0 +
+
+
+
+
+
+
+
0 +
+
+0
+
+0
+
+0
+0
+
+0
+
+
0 +
$
Supplies
0
4 Equipment
+0
0
+
0
+
0 +
+
+
+
+
+
+
+
+
0 +
+
+0
+
+0
+
+0
+
0 +
+
➜ Building -
0
+
+
0 +
+
+
+
+0
+
+0
+
+0
+
0 +
+
+0
+
+0
+
+0
+
$ 0+ $
0
= 10
=
0
=
0
=
=
0 =
=
=
=
=
=
0 =
=
= 0
=
0 =
Accounts
Payable
=
0 =
=
0 =
$
+
+
+
0 +
+
+0
+
0 +
+
+0
+
+0
T
0 +
L. Lopez,
Capital
+
0 +
+
0 +
0
+
0 +
+
+
$
0
Your disk is almost full
Save space by optimizing storage.
-
-0
0
0
-
-
0
L. Lopez,
Withdrawals
-
0
-
0
-
0-
0
-
0 - $
+
+
0 +
+
0 +
+
0 +
Revenu
+
0 +
+
+ 0
+
0+
+
0 +
+
0 +
+
0 +
+
0 +
$
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