Question

QUESTION HAS 2 PARTS..

100. Joe Jackson opened Jackson's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:

Jackson invested $42,000 cash in the business.

Jackson contributed $117,000 of equipment to the business.

The company paid $3,700 cash to rent office space for the month of March.

The company received $33,000 cash for repair services provided during March.

The company paid $7,900 for salaries for the month of March.

The company provided $4,700 of services to customers on account.

The company paid cash of $2,200 for utilities for the month of March.

The company received $4,800 cash in advance from a customer for repair services to be provided in April.

Jackson withdrew $6,700 for his personal use from the company.

Based on this information, net income for March would be:

100b. Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:

Account Title	Dr			Cr
Cash	$	59,000
Accounts receivable		28,000
Prepaid insurance		11,400
Equipment		220,000
Accumulated depreciation—Equipment				$	110,000
Land		107,000
Accounts payable					29,000
Interest payable					5,400
Unearned revenue					8,600
Long-term notes payable					66,000
Z. Taron, Capital					206,400
Totals	$	425,400		$	425,400

Answer 1

1	Net Income	=	Revenues - Expenses
	Cash receive for repair services	=	$    33,000
Add:	Services provided to customer	=	$      4,700
Less:	Rent paid	=	$      3,700
Less:	Salaries Paid	=	$      7,900
Less:	Cash paid for monthly Utilities	=	$      2,200
	Net Income		$    23,900
2	Current Assets of Taron Company :-
	Cash		$    59,000
	Account Receivables		$    28,000
	Prepaid Insurance		$    11,400
	Current Assets		$    98,400