During the year, A Salt & Buttery, Inc., had revenue of $86,000 of which $17,000 was...

Question

Question

Answer 1

Answer #1

Net income = Revenue - Expenses

Net income =( 86,000 - 29,000)

Net income = 57,000

Net income for the year equals 57,000.

Note:

1. Revenue and expenses are recorded on accrual basis and not on cash basis.

2. Revenues are recorded as and when it is earned. Receipts of money is not considered.

3. Expenses are recorded as and when it is incurred. Payment of money is not considered.

4. Dividends are the appropriation of profits.

5. All the amounts are in $.

Answer 2

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