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Refer to the following table:The net incomeor loss for the year wasa) 7,700b) 12,800c) 5,900d) 15,100Following is a random list showing the account balances of various assets, liabilities, revenues, and expenses for Michael's Landscaping at December 31, 2013, the end of its first year of operations.Accounts receivable $25,000Accounts payable 3,500Salary expense 4,500Repairs expense 800Truck 8,500Equipment 6,300Notes payable 8,200Cash 6,800Supplies expense 1,600Service revenue 22,800Gasoline expense 800Salary payable 2,200The owner, Michael Mower, invested $22,600 at the beginning of the year and withdrew $5,000 during the year for personal use.

User Meteor
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Option D , 15,100

Solution:

The formula for net income is calculated through total expenditures subtracted from total revenues.

Net Income = Service Revenue - Salary Expense - Repairs Expense - Supplies Expense - Gasoline expense

= $22,800-$4,500-$800-$1,600-$800

= $15,100

Net Income = $15,100

User Gorill
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