Best Plumbing Company offers plumbing services. Selected transactions of Best Plumbing Company are as follows: a) Received
Question:
Best Plumbing Company offers plumbing services. Selected transactions of Best Plumbing Company are as follows:
a) Received $9,000 cash contribution from owner June Sharon.
b) Paid $6,000 in cash for equipment to be used in plumbing repairs.
c) Borrowed $9,000 from a local bank and deposited the money in a checking account.
d) Paid $800 in rent for the year.
e) Paid $200 in cash for plumbing supplies to be used next year.
f) Completed a plumbing repair project for a local attorney and received $6,000 in cash.
Calculate net income. Let's say $200 of plumbing supplies remain.
The following transactions for March have been logged and posted to the appropriate accounts.
March 1 The business received a $10,000 cash contribution from the owner.
March 2 He paid the first month's rent of $800.
March 3 purchased equipment by paying $4,000 in cash and issuing a promissory note payable for $6,000.
March 4 purchased office supplies for $500 in cash.
March 5 A client has been invoiced for $14,000 of completed design services.
6 March Received $6,000 for previously recorded services.
What is the ending balance in the Service Income account?
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman