Reference no: EM132644002

The following transactions occurred during a recent year:

a. Paid wages of $1,100 for the current period (example).

b. Borrowed $5,500 cash from local bank using a short-term note.

c. Purchased $2,200 of equipment on credit.

d. Earned $440 of sales revenue; collected cash.

e. Received $880 of utilities services, on credit.

f. Earned $1,870 of service revenue, on credit.

g. Paid $330 cash on account to a supplier.

h. Incurred $75 of travel expenses; paid cash.

i. Earned $440 of service revenue; collected half in cash, with balance on credit.

j. Collected $110 cash from customers on account

k. Incurred $320 of advertising costs; paid half in cash, with balance on credit.

Question 1: Determine the company's preliminary net income.