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.

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.
Jackson withdrew $5,000 for his personal use from the company.
Based on this information, net income for March would be:
A) $8,400.
B) $13,500.
C) $5,300.
D) $13,400.
E) $10,300.

Question

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.

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.
Jackson withdrew $5,000 for his personal use from the company.
Based on this information, net income for March would be:
A) $8,400.
B) $13,500.
C) $5,300.
D) $13,400.
E) $10,300.

Quizplus · Accepted Answer

The Answer of 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.

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.
Jackson withdrew $5,000 for his personal use from the company.
Based on this information, net income for March would be:
A) $8,400.
B) $13,500.
C) $5,300.
D) $13,400.
E) $10,300.

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