Sharon Samson Starts a Plumbing Service Named Reliable Waterworks

question 49

Multiple Choice

Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows:
A. Sharon deposited $8,000 into a new checking account for the business and recorded the capital contribution.
B. Paid $5,000 cash for equipment to be used for plumbing repairs.
C. Borrowed $10,000 from a local bank and deposited the money in the checking account.
D. Paid $800 rent for the year.
E. Paid $300 cash for plumbing supplies to be used in future.
F. Completed a plumbing repair project for a local lawyer and received $4,000 cash.
Calculate the net income.

• A) $2,900
• B) $3,700
• C) $4,000
• D) $3,200

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