Sharon Samson Starts a Plumbing Service Named Reliable Waterworks

question 75

Multiple Choice

Sharon Samson starts a plumbing service named Reliable Waterworks.Selected transactions are described as follows:
A.Sharon deposits $7,000 into a new checking account for the business,recording the capital contribution.
B.Reliable pays $4,000 cash for equipment to be used for plumbing repairs.
C.Reliable borrows $15,000 from a local bank and deposits the money in the checking account.
D.Reliable pays $600 rent for the first month.
E.Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future.
F.Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash.
G.Sharon takes a cash withdrawal of $2,500.
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After all of the transactions,what is net income?

• A)$700
• B)$300
• C)$4,500
• D)$1,300

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Definitions:

Taste Buds

Small sensory organs located on the tongue, which are capable of detecting the five basic tastes.

Primary Odor

A basic scent that is recognized universally by the olfactory system and is a fundamental component of odor perception.

Olfactory Epithelium

A specialized epithelial tissue inside the nasal cavity involved in the sense of smell, containing olfactory receptor neurons.

Mitral Cells

Neurons located in the olfactory bulb that act as primary processors of olfactory information.