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The following transactions occurred during a recent year:   a

Accounting

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The following transactions occurred during a recent year:

 

a.Paid wages of $1,100 for the current period (example).

b.Borrowed $5,500 cash from local bank using a short-term note.

c.Purchased $2,200 of equipment on credit.

d.Earned $440 of sales revenue; collected cash.

e.Received $880 of utilities services, on credit.

f.Earned $1,870 of service revenue, on credit.

g.Paid $330 cash on account to a supplier.

h.Incurred $75 of travel expenses; paid cash.

i.Earned $440 of service revenue; collected half in cash, with balance on credit.

j.Collected $110 cash from customers on account

.k.Incurred $320 of advertising costs; paid half in cash, with balance on credit.

 

 

2.Determine the company's preliminary net income.