Question

eff Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred: Jackson invested $27,000 cash in the business in exchange for common stock. Jackson contributed $102,000 of equipment to the business. The company paid $2,200 cash to rent office space for the month of March. The company received $18,000 cash for repair services provided during March. The company paid $6,400 for salaries for the month of March. The company provided $3,200 of services to customers on account. The company paid cash of $700 for utilities for the month of March. The company received $3,300 cash in advance from a customer for repair services to be provided in April. The company paid $5,200 in cash dividends. Based on this information, net income for March would be:

Answer 1

Answer:

Jeff Jackson's Repairs

The net income for March would be:

= $11,900.

Explanation:

a) Data and Analysis:

March 1: Cash $27,000 Equipment $102,000 Common stock $129,000

Rent expense $2,200 Cash $2,200

Cash $18,000 Service revenue $18,000

Salaries expense $6,400 Cash $6,400

Accounts receivable $3,200 Service revenue $3,200

Utilities expense $700 Cash $700

Cash $3,300 Deferred revenue $3,300

Cash Dividends $5,200 Cash $5,200

Net Income for the month of March would be:

Service Revenue ($18,000 + $3,200) $21,200

Expenses:

Rent expense     $2,200

Salaries expense 6,400

Utilities expense     700                        (9,300)

Net income for March =                       $11,900