Springer Company,a sole proprietorship,had the following transactions in August: Earned $2,000 of revenues on account; collected $4,000 from a customer for services provided last month; incurred $800 of repair expense and paid cash; paid $500 for rent that it owed from the previous month.
What is the net income in August?
A) $800
B) $4,000
C) $5,200
D) $1,200

Question

Quizplus · Accepted Answer

D) Net income = Revenue - Expenses = $2,000 - $800 = $1,200.

Springer Company,a Sole Proprietorship,had the Following Transactions in August: Earned