ABC Services Reported the Following Transactions for September,2013

question 56

Essay

ABC Services reported the following transactions for September,2013.
A.The owner opened the business with a capital contribution of $23,500 cash.It was credited to Capital.
B.The business purchased office equipment for $11,500.The business paid $2,500 down and put the balance on a note payable.
C.The business paid a utility bill for $980 cash.
D.The business paid $2,000 cash for September rent.
E.The business had sales of $15,000 in September.Of these sales,60% were cash sales,and the balance was credit sales.
F.The business paid $9,700 cash for office furniture.
What is the net income for September,2013?
A)$12,020
B)$9,000
C)$6,020
D)$5,300

• A)$12,020
• B)$9,000
• C)$6,020
• D)$5,300

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Definitions:

Tandem Drive

Tandem drive refers to a vehicle configuration where two sets of drive axles are arranged in a row, commonly seen in heavy-duty trucks, to distribute weight and increase traction.

Axles

Mechanical components that connect wheels on opposite sides of a vehicle, transferring power from the drivetrain to the wheels for movement.

Freight Volume

The amount of goods, cargo, or freight being transported or capable of being transported.

Vocational

medium- and heavy-duty trucks used for specific work applications rather than linehaul. Examples would be dump trucks, milk tankers, fire trucks, cement trucks, cranes, fuel tankers, etc.