Reference no: EM132484525

Question - Sharon Samson starts a plumbing service, Reliable Waterworks, a proprietorship. Selected transactions are described as follows:

A) Sharon deposits $7,000 into a new checking account for the company, receiving stock in exchange.

B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs.

C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account.

D) Reliable pays $600 rent for the first month.

E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future

F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash

G) Sharon makes withdrawals of $2,500.

After all of the transactions, what is net income?

A) $600

B) $700

C) $4,500

D) $1,300