Question

4. A corporation has revenues of $220,000 and expenses of $190,000 in 2019. The corporation also declares and pays cash dividends of $25,000 in 2019. Calculate the net income for 2019 5. A business has a balance in the Supplies account of $900 on 3/1/20. On 3/5/20 the business purchases additional office supplies on account for $2,000. On 3/10/20 the business pays $1,000 for the office supplies they purchased on 3/5/20. The balance in the Supplies account should be $2,100 on 3/31/20. Calculate the supplies used during March 6. A business has a balance in the Account Receivable account of $20,000 on 12/1/19. All services the business performs are on account. During December the business performs $30,000 of services on account for customers and they collect $19,000 from these customers. Calculate the balance in the Account Receivable account on 12/31/19 15

Answer 1

Answer of Question 4:

Net Income = Revenue – Expenses
Net Income = $220,000 - $190,000
Net Income = $30,000