Question

Cash 5,345 Accounts Receivable 2,662 Prepaid Expenses 725 Equipment 14,421 Accumulated Depreciation 6,970 Accounts Payable 1,643 Notes Payable 5,223 Common Stock 1,000 Retained Earnings 6,003 Dividends 664 Fees Earned 7,033 Wages Expense 2,463 Rent Expense 804 Utilities Expense 441 Depreciation Expense 234 Miscellaneous Expense 113 Totals 27,872 27,872 Determine the net income (loss) for the period.

Answer 1

Answer:

Net income = $8,318

Explanation:

Current asset

Cash 5,345

Accounts receivables 2,662

Prepaid expenses 725

Total 8,732

Fixed asset

Equipment 14,421

Less dep. 6,970

Balance. 7,451

Total 8,733 + 7,451 = 16,184

Current liabilities

Accounts payable 1,643

Notes payable. 5,223

Total. 6,866

Financed by

Common stock 1,000

Net Income. 8,318

Total 6,866 + 9,318 = 16,184