Donaldson's Delivery Company Began Operations on January 1,2019 What Is the Net Income for the Year Ended December

question 216

Multiple Choice

Donaldson's Delivery Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019. Donaldson's Delivery Service Company
Trial Balance
December 31,2019
$$\begin{array} { l c c } \text { Accuunt Title } & \text { Debit } & \text { Credit } \\\text { Cash } & \$ 15,500 & \\\text { Accounts Receivable } & 8,000 & \\\text { Prepaid Rent } & 2,400 & \\\text { Office Supplies } & 1,400 & \\\text { Larnd } & 25,000 & \\\text { Building } & 32,000 & \\\text { Equipment } & 23,000 & \\\text { Accounts Payable } & & \$ 10,400 \\\text { Unearned Reveruse } & & 2,500 \\\text { Notes Payble } & & 20,000 \\\text { Donaldson, Capital } & & 57,000 \\\text { Donaldson, Withdrawals } & 6,400 & \\\text { Service Reveriue } & & 83,900 \\\text { Salaries Expense } & 28,000 & \\\text { Rent Expense } & 18,000 & \\\text { Truck Expense } & 12,400 & \\\text { Office Expense } & \underline{1,700 } &\underline{\quad\quad} \\\text { Total } & \underline{\$173,800}& \underline{\$173,800} \\\end{array}$$ What is the net income for the year ended December 31,2019?

• A) $17,400
• B) $23,800
• C) $26,300
• D) $74,400

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Definitions:

Positioning Criteria

Factors or attributes used by marketers to establish a product's image and identity in the minds of the target market relative to competitors.

Perceptual Map

A visual representation that displays consumers’ perceptions of a brand or product in relation to others within the marketplace.

Variable Costs

Costs that vary directly with the level of production or the volume of services rendered, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.