Best Plumbing Corporation provides plumbing services.Selected transactions of Best Plumbing Corporation are described as follows:
a)Received $9,000 cash and issued common stock to Sharon.
b)Paid $5,000 cash for equipment to be used for plumbing repairs.
c)Borrowed $10,000 from a local bank and deposited the money in the checking account.
d)Paid $900 rent for the year.
e)Paid $400 cash for plumbing supplies to be used next year.
f)Completed a plumbing repair project for a local lawyer and received $4,000 cash.
Calculate the net income.Assume plumbing supplies of $400 are left.

Question

Best Plumbing Corporation provides plumbing services.Selected transactions of Best Plumbing Corporation are described as follows: 
a)Received $9,000 cash and issued common stock to Sharon.
b)Paid $5,000 cash for equipment to be used for plumbing repairs.
c)Borrowed $10,000 from a local bank and deposited the money in the checking account.
d)Paid $900 rent for the year.
e)Paid $400 cash for plumbing supplies to be used next year.
f)Completed a plumbing repair project for a local lawyer and received $4,000 cash.
Calculate the net income.Assume plumbing supplies of $400 are left.

Quizplus · Accepted Answer

Net income = Revenues - Expenses
Net income = $4,000 - $900 = $3,100

Best Plumbing Corporation Provides Plumbing Services