San Bernadino Company opened for business on April 1.Given below is the activity of the company for the month of April. Under accrual basis accounting,what is the net income for the month of April?
A)$8,000
B)$12,000
C)$18,000
D)$22,000

Question

San Bernadino Company opened for business on April 1.Given below is the activity of the company for the month of April.  Under accrual basis accounting,what is the net income for the month of April?
A)$8,000 
B)$12,000 
C)$18,000 
D)$22,000

Quizplus · Accepted Answer

To calculate the net income, we need to subtract total expenses from total revenue.

Total revenue = $40,000 + $14,000 + $10,000 = $64,000 
Total expenses = $15,000 + $7,000 + $10,000 = $32,000

Net income = Total revenue - Total expenses = $64,000 - $32,000 = $32,000

Therefore, the correct choice is D, $22,000.

San Bernadino Company Opened for Business on April 1