A company completed the following transactions during the month of October: I. Purchased office supplies on account, $4,000.
II. Provided services for cash, $10,000.
III. Provided services on account, $12,000.
IV. Collected cash from a customer on account $7,000.
V. Paid the monthly rent of $3,000.
What was the company's net income for the month?
A) $0
B) $10,000
C) $19,000
D) $22,000

Question

Quizplus · Accepted Answer

The company's total revenue for the month was $22,000 ($10,000 cash received and $12,000 services provided on account). The expenses were $4,000 for office supplies and $3,000 for rent. The company also received $7,000 in cash from a customer. Therefore, the net income for the month was $22,000 – $4,000 – $3,000 = $15,000.

A Company Completed the Following Transactions During the Month of October