The Balances for the Accounts of Lance's Consulting Firm,Inc Calculate Net Income

question 1

Short Answer

The balances for the accounts of Lance's Consulting Firm,Inc.for the year ended December 31 are shown below.Each account shown had a normal balance.
$$\begin{array} { l r l r } \text { Accounts payable } & \$ 6,400 & \text { Wages expense } & \$ 35,000 \\\text { Accounts receivable } & 7,000 & \text { Rent expense } & 5,000 \\\text { Cash } & 10,000 & \text { Retained earnings } & 68,700 \\\text { Office supplies } & 1,000 & \text { Land } & 53,000 \\\text { Building } & 99,000 & \text { Unearned revenue } & 7,000 \\\text { Supplies expense } & 15,000 & \text { Dividends } & 20,000 \\\text { Consulting revenue } & 150,000 & \text { Common stock } & 12,900\end{array}$$
Calculate net income.

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Definitions:

Business for Profit

Organizations that operate with the primary goal of earning financial returns for their owners or shareholders.

Limited Liability Corporation

A business structure that offers its owners protection from personal liability for the debts of the company, while allowing them to enjoy the tax and operational benefits of a partnership.

Sole Proprietorship

A simple business structure where a single individual owns, manages, and is responsible for all aspects of the business, including liabilities.

Partnership

A form of business where two or more people agree to contribute resources to start and operate a business together.