Question

The following information applies to the questions displayed below.) Waldorf Co. had the following transactions during the month of October 2018: (1) Cash received from bank loans was $60,000. (2) Dividends of $18,500 were paid to stockholders in cash. (3) Revenues earned and received in cash amounted to $100,500. (4) Expenses incurred and paid were $78,000. What amount of net income will be reported on an income statement for the month of October?
a. $100,500.
b. $ 78,000.
c. $ 22500
d. $ 18,500.

Answer 1

Answer:

c. $ 22500

Explanation:

The income statement shows the net income of an entity for  given period. This is determined by deducting the expenses from the sales for the period.

Given;

Revenue earned and received in cash amounted =  $100,500

Expenses incurred and paid  = $78,000

Net income for the month = $100,500 - $78,000

= $22,500