Final answer:
Springer Corporation's actual net income for August is $5,200, calculated by adding the revenue earned and collected ($2,000 + $4,000) and then subtracting the expenses ($600 + $200). None of the options are correct.
Step-by-step explanation:
To calculate the net income for Springer Corporation in August, we need to consider revenues realized and expenses incurred during that month. The company earned $2,000 of revenues on account, collected $4,000 for services previously provided, incurred a $600 repair expense paid in cash, and paid $200 for rent from the previous month.
Here is the breakdown:
- Revenue earned on account: +$2,000
- Cash collected for prior services: +$4,000
- Repair expenses: -$600
- Rent paid for the previous month: -$200
Net income = ($2,000 + $4,000) - ($600 + $200) = $6,000 - $800 = $5,200.
Therefore, none of the provided answer choices (a. $600 b. $4,000 c. $5,400 d. $1,400) are correct as the actual net income for August is $5,200.