At the End of the First Month of Operations for Jackson's

question 48

Multiple Choice

At the end of the first month of operations for Jackson's Catering Service, the business had the following accounts: Cash, $21,000; Prepaid Rent, $500; Equipment, $7,500 and Accounts Payable
$4,000. By the end of the month, Jackson's had earned $32,000 of Revenues, and used $1,800 of Utilities Expenses, $4,000 of Rent Expense and $3,600 of Salaries Expenses. Calculate the net income to be reported by the company for this first month.

• A)$32,000
• B)$26,200
• C)$22,600
• D)$23,100

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Definitions:

Introspection

Reviewing and reflecting on one's own mental and emotional experiences.

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A British psychologist who founded structuralism, a school of thought aimed at analyzing the adult mind in terms of the simplest definable components.

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The theory that all knowledge is derived from sense-experience and observation.