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.
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