Reference no: EM131625564

Question - Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations.

a. Lita Lopez invests $70,000 cash and office equipment valued at $10,000 in the company.

b. The company purchased a $150,000 building to use as an office. Biz Consulting paid $20,000 in cash and signed a note payable promising to pay the $130,000 balance over the next 10 years.

c. The company purchased office equipment for $15,000 cash.

d. The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.

e. The company paid a local newspaper $500 cash for printing an announcement of the office's opening.

f. The company completed a financial plan for a client and billed that client $2,800 for the service.

g. The company designed a financial plan for another client and immediately collected a $4,000 cash fee.

h. Lita Lopez withdrew $3,275 cash from the company for personal use.

i. The company received $1,800 cash as partial payment from the client described in transaction f.

j. The company made a partial payment of $700 cash on the equipment purchased in transaction d.

k. The company paid $1,800 cash for the office secretary's wages for this period. 

Determine the company's net income.