Jackson Consulting Had the Following Accounts and Balances at December

question 125

Multiple Choice

Jackson Consulting had the following accounts and balances at December 31: $\begin{array}{|l|c|c|}\hline \text { Account } & \text { Debit } & \text { Credit } \\\hline \text { Cash } & \$ 20,000 & \\\hline \text { Accounts Receivable } & 6,000 & \\\hline \text { Prepaid Insurance } & 1,500 & \\\hline \text { Supplies } & 5,000 & \\\hline \text { Accounts Payable } & & \$ 500 \\\hline \text { R. Jackson, Capital } & & 16,200 \\\hline \text { R. Jackson, Withdrawals } & 1,000 & \\\hline \text { Service Revenue } & & 20,000 \\\hline \text { Utilities Expense } & 2,000 & \\\hline \text { Salaries Expense } & 1,200 & \\\hline \text { Totals } & \$ 36,700 & \$ 36,700 \\\hline\end{array}$
Using the information in the table, calculate Jackson Consulting's reported net income for the period.

• A) $16,800
• B) $15,800.
• C) $23,200
• D) $10,300.
• E) $15,300

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all paid interest and principal repayments.

Market Price

The ongoing financial rate for purchasing or selling an asset or service.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily reflecting the market value.

Coupon Bond

A type of bond that offers periodic interest payments to its holder, typically paid semi-annually, until maturity.