Answer:
A.
a.Dr Cash 25,000
Cr Common Stock 25,000
b. Dr Utilities expense 600
Cr Utilities payable 600
c. Dr Wages expense 2,000
Cr Cash 2,000
d. Dr Account receivable 2,800
Cr Service revenue 2,800
e. Dr Repairs expense 150
Cr Cash 150
B. $50
Explanation:
Preparation of Journal entries
a. Based on the information given we were told that the amount of $25,000 of QCI stock for cash was issued which means that the Journal entry will be :
Dr Cash 25,000
Cr Common Stock 25,000
b. Based on the information given we were told that they Incurred the amount of $600 of utilities costs which means that the Journal entry will be :
Dr Utilities expense 600
Cr Utilities payable 600
c. Based on the information given we were told that the company Incurred and as well paid wages totaling the amount of $2,000 which means that the Journal entry will be :
Dr Wages expense 2,000
Cr Cash 2,000
d. Based on the information given we were told that the company Performed cleaning services that cost $2,800 which means that the Journal entry will be:
Dr Account receivable 2,800
Cr Service revenue 2,800
e. Based on the information given we were told that the Cleaners’s equipment was repaired at the amount of $150 which means that the Journal entry will be :
Dr Repairs expense 150
Cr Cash 150
2) Calculation for the Net income
Net income = 2,800-2,000-150-600
Net income = $50
Therefore net income will be $50
