Golden Company had these transactions during the accounting period: Sold merchandise for $600; its cost was $400.
Collected $400 from a trade receivable.The account was established in the previous year.
Used office supplies of $50.
Golden's profit for the period would be which of the following?
A)$50.
B)$150.
C)$600.
D)$900.

Question

Quizplus · Accepted Answer

To calculate the profit, we need to calculate the total revenue and total expenses.

Total revenue = $600 (sales revenue)

Total expenses = $400 (cost of goods sold) + $50 (office supplies) = $450

Profit = Total revenue - Total expenses = $600 - $450 = $150.

Therefore, the correct answer is B.

Golden Company Had These Transactions During the Accounting Period: Sold