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Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000

-What is Yowell's net income?
A)$9,000
B)$30,000
C)$18,000
D)$6,000

Question

The following information applies to the questions displayed below.
 
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000 
2) borrowed $25,000 from its bank 
3) provided consulting services for $39,000 
4) paid back $15,000 of the bank loan 
5) paid rent expense for $9,000 
6) purchased equipment costing $12,000 
7) paid $3,000 dividends to stockholders 
8) paid employees' salaries, $21,000

-What is Yowell's net income?
A)$9,000
B)$30,000
C)$18,000
D)$6,000

Quizplus · Accepted Answer

$39,000 revenue - $9,000 rent expense -$21,000 salaries expense = $9,000 net income

The Following Information Applies to the Questions Displayed Below