Reference no: EM132907507

Regent Plumbing Company provides plumbing services. The company is a sole proprietorship. Selected transactions of Regent Plumbing Company are described as follows:

a) Sharon Regent, the owner, contributed $9,000 cash in exchange for capital.

b) Paid $5,000 cash for equipment to be used for plumbing repairs.

c) Borrowed $10,000 from a local bank and deposited the money in the checking account.

d) Paid $900 rent for the year.

e) Paid $400 cash for plumbing supplies to be used next year.

f) Completed a plumbing repair project for a local lawyer and received $4,000 cash.

Problem 1: Calculate the net income. Assume plumbing supplies of $400 are left at the end of the accounting period.

A) $500

B) $3,600

C) $4,000

D) $3,100