Calculate the amount of net income

Assignment Help Financial Accounting

Reference no: EM131250400

ABC Company began operations in June, 2017 by selling common stock to owners in exchange for $70,000 cash. During 2017, ABC Company entered into the following transactions:

1. On June 23, ABC Company purchased inventory for $40,000 cash

2. On July 1, ABC Company purchased supplies for $18,000 cash

3. On August 1, ABC Company received $40,000 cash from a customer for services to be performed over the next 20 months

4. On September 1, ABC Company sold one-half of the inventory purchased on June 23 to a customer for $35,000 cash

5. A physical count revealed that supplies costing $6,000 were still on hand at December 31

Calculate the amount of net income that ABC Company would report in its 2017 income statement after all the above transactions are recorded and all necessary adjusting entries are made at December 31, 2017. Do not use decimals in your answer.

Reference no: EM131250400

Questions Cloud

Transactions for the just completed month : Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories. $76,300 in raw materials were purchased for cash. $72,700 in raw materials were requisitioned for use in production. Of this ..

Accounting for share issues and options : Accounting for share issues and options Sunny Ltd is looking to expand its operations, and in order to do this, the company needs to increase equity. On 1 January 2016, Sunny Ltd offered 4,000,000 ordinary shares to the public at an issue price of $3..

The measurement of the value of transactions : Identify and critically discuss the following five principles in relation to the measurement of the value of transactions and or events. Separability and identity. Current cost accounting. Verifiability. Income approach. Matching principle

Briefly discuss the four tier system for financial reporting : Briefly discuss the four tier system for financial reporting (Use an appropriate diagram or table as part of your answer.

Calculate the amount of net income : ABC Company began operations in June, 2017 by selling common stock to owners in exchange for $70,000 cash. During 2017, ABC Company entered into the following transactions: On June 23, ABC Company purchased inventory for $40,000 cash. Calculate the a..

Calculate amount of interest expense related to this loan : Franklin Co. borrowed $60,000 from a bank on July 1, 2017 and agreed to pay it back in ten months at an interest rate of 16% per year. Calculate the amount of interest expense related to this loan reported in Franklin Co.'s 2018 income statement. Do ..

Calculate xyz company total liabilities : XYZ Company had total assets of $500,000 and total liabilities of $200,000 at January 1, 2016. At December 31, 2016, XYZ Company had total equity of $400,000. XYZ Company reported a return on investment (ROI) of 16% for 2016 and a net income of $93,0..

Create and initialize an array testmarks of type integer : Write a program that will prompt the user to enter his/her name and a number. Use a while loop that will display the user name times the entered number - Create a method called Calculate() of type integer that will calculate and return back the to..

How is ge aviation structured to meet customer demands : How is GE Aviation structured to meet customer demands? If you could please provide a few outside resources (websites) where I can do more research and find information on this question that would be great!

User Account

All Pages