Question

Quiz 0 Saved Help Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information: a. Sales, per the cash register tapes, of $120,000, plus one sale on credit (a special situation) of $3,900. b. With the help of a friend (who majored in accounting), you determine that all of the goods sold during January cost $46,000 to purchase. c. During the month, according to the checkbook, you paid $41,000 for salaries, rent, supplies, advertising, and other expenses: however, you have not yet pald the $1,200 monthly utilities for January. Required: On the basis of the data given (disregard Income taxes), what was the amount of net income for January (Hint A convenient form to use has the following major side captions: Revenue from Sales, Expenses, and the difference-Net Income.) Net income $ 35,7005

Answer 1

Solution 1:

Computation of net income
Particulars	Amount
Revenue from sales	$123,900.00
Expenses:
Cost of goods sold	$46,000.00
Salaries, rent, supplies, advertising, utilities and other expenses	$42,200.00
Net income	$35,700.00

Solution 2:

Independent Cases	Total revenues	Total expenses	Net income (loss)	Total Assets	Total liabilities	Total stockholder's equity
A	$246,100.00	$198,600.00	$47,500.00	$257,300.00	$76,900.00	$180,400.00
B	$210,220.00	$178,400.00	$31,820.00	$593,800.00	$241,300.00	$352,500.00
C	$77,300.00	$93,790.00	-$16,490.00	$264,200.00	$192,660.00	$71,540.00
D	$39,640.00	$27,900.00	$11,740.00	$291,755.00	$192,330.00	$99,425.00
E	$227,930.00	$211,400.00	$16,530.00	$537,750.00	$175,750.00	$362,000.00