Joe Jackson Opened Jackson's Repairs, Inc

question 155

Multiple Choice

Joe Jackson opened Jackson's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Jackson invested $25,000 cash in the business.
2) Jackson contributed $100,000 of equipment to the corporation.
3) The company paid $2,000 cash to rent office space for the month.
4) The company received $16,000 cash for repair services provided during March.
5) The company paid $6,200 for salaries for the month.
6) The company provided $3,000 of services to customers on account.
7) The company paid cash of $500 for monthly utilities.
8) The company received $3,100 cash in advance of providing repair services to a customer.
Based on this information, net income for March would be:

• A)$10,300.
• B)$13,400.
• C)$5,300.
• D)$8,400.
• E)$13,500.

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Definitions:

Residual Value

An asset's expected monetary value at the end of its operational lifespan.

Retired

The status of an individual who has left their professional career, often due to age or reaching financial independence that allows them not to work actively.

Estimated Value

An approximation of the monetary worth of an asset, liability, or a business, determined through analysis or professional judgment.

Fixed Asset

Long-term tangible property owned by a business, used in its operations and not expected to be consumed or converted into cash in the short term.