Activity at the Clarkson Company for the first six months of 2023 was slow. At the end of June, the company borrowed $30,000. During the first six months of 2023, the sales revenue, including sales on credit, was $120,000, and only $50,000 of that amount was collected in cash. Amounts for rent, salaries, and miscellaneous operating expenses for the first six months, paid in cash, were $40,000, $28,000, and $12,000, respectively. Supplies costing $1,800 for a new service to be introduced in the second half of the year were ordered on June 15th and received on June 30th. In addition, Clarkson paid $1,200 on June 30, 2023, in full payment of the personal property tax for the 2023 calendar year.

Compute the amount of net income Clarkson Company should report for the six months ending June 30, 2023, using ACCRUAL ACCOUNTING. To receive partial credit, you must show supporting calculations for your answer.

Answer rating: 100% (QA)

To compute the net income for Clarkson Company for the six months ending June 30 2023 using accrual ... View the full answer