Question

Item 12Item 12 During October, a firm had the following transactions involving revenue and expenses. Paid $1,275 for rent for October Provided services for $2,900 in cash Paid $280 for the October telephone service Provided services for $2,050 on credit Paid salaries of $1,750 to employees Paid $380 for the monthly office cleaning service Calculate the net income or net loss for the period?

Answer 1

Answer:

$1,265

Explanation:

Net income is the excess of revenue over expenses while Net loss is the excess of expenses over revenue.

We can calculate the net income/net loss for the firm as seen below.

Revenue $

Service. 2,900

Service 2,050

Less : Expenses

Rent $1,275

Telephone $280

Salaries. $1,750

Cleaning $380. (3,685)

Net income. 1,265