Astoria Co. had the following transactions during the month of August, 2010:
* Cash received from bank loans was $20,000.
* Dividends of $9,500 were paid to shareholders in cash.
* Revenues earned and received in cash amounted to $33,500
* Expenses incurred and paid were $26,000
-Refer to the above data. What amount of profit will be reported on an income statement for the month of August, 2010?
A) $20,000.
B) $7,500.
C) $0.
D) $33,500.

Question

Quizplus · Accepted Answer

To calculate the profit, we need to subtract total expenses from total revenues. 
Total Revenues = $33,500
Total Expenses = $26,000
Profit = Total Revenues - Total Expenses
Profit = $33,500 - $26,000
Profit = $7,500