Question

Camrim Inc., experienced the following events in 2018, its first year of operation: Performed counseling services for $42,700 on account. On May 1, 2018, paid $8,800 cash to rent office space for the next 18 months.. Adjusted the accounts to reflect the amount of rent used during the year. Based on these three events, net income is $___________

Answer 1

Answer: $36833

Step-by-step explanation:

The net income will be calculated as:

Service revenue = $42700

Less: Debt expense = $8800 × 8/12 = $5867

Net income = $42700 - $5867 = $36833.

Therefore, based on the information and the calculation solved above, we can see that the net income is $36833