Joe Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: • Jackson invested $25,000 cash in the business in exchange for common stock.
• Jackson contributed $100,000 of equipment to the business.
• The company paid $2,000 cash to rent office space for the month of March.
• The company received $16,000 cash for repair services provided during March.
• The company paid $6,200 for salaries for the month of March.
• The company provided $3,000 of services to customers on account.
• The company paid cash of $500 for utilities for the month of March.
• The company received $3,100 cash in advance from a customer for repair services
To be provided in April.
• The company paid Jackson $5,000 cash as a dividend.
Based on this information, net income for March would be:
A) $10,300.
B) $13,400.
C) $5,300.
D) $8,400.
E) $13,500.

Question

Quizplus · Accepted Answer

Net income is calculated as total revenues minus total expenses. Revenues include $16,000 cash for services and $3,000 on account, totaling $19,000. Expenses include $2,000 rent, $6,200 salaries, and $500 utilities, totaling $8,700. Net income is $19,000 - $8,700 = $10,300.

Joe Jackson Opened Jackson's Repairs on March 1 of the Current