Question

Company began operations on June 1, 2019. The company entered into
the following transactions during 2019:

June 1:      Sold common stock to owners in the amount of $284,000 and
             borrowed $59,000 from the bank on a three-year note payable.

June 1:      Purchased a parcel of land costing $154,000 by paying $36,000
             in cash and agreeing to pay the remainder within 90 days.

July 31:     IYQ Company earned and received $27,000 of interest on its
             bank accounts in July.

August 1:    IYQ sold the land purchased on June 1 for $235,000 cash.

August 18:   Purchased inventory costing $76,000 on account.

November 2:  Sold one-half of the inventory purchased on August 18 for
             $119,000. The customer did not pay any cash at the time of
             purchase, but did agree to pay the entire balance due
             within sixty days.

November 30: Received and paid a $35,000 bill for advertising done during
             the month of November.            

Calculate the amount of net income reported in IYQ Company's 2019
income statement.

Answer 1

	Amount $
Sales Revenue	119,000
Interest revenue	27,000
Gain on sale of Land	81,000	(235,000 - 154,000 )
Total Revenue	227,000
Expenses
Cost of goods sold	38,000	(76,000 / 2 )
Advertising Expense	35,000
Total Expenses	73,000
Net Income	154,000

Net income of $ 154,000 will be reported in IYQ Company's 2019 income statement..