Glendale Corporation had the following transactions in August: Earned $2,000 as revenues on account; collected $4,000 from a customer for goods sold last month; incurred $600 of repair expense and paid cash; paid $200 to a supplier that it owed from the previous month.
What is the net income in August?

Question

Quizplus · Accepted Answer

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

Revenues: $2,000 (earned on account) + $4,000 (collected from customer) = $6,000

Expenses: $600 (repair expense) + $200 (supplier payment) = $800

Net Income: $6,000 - $800 = $5,200

Therefore, the correct answer is D, $1,400.

Glendale Corporation Had the Following Transactions in August: Earned $2,000