Question

ABC Company entered into the following transactions during
May, its first month of operations:

May 1:   ABC Company sold common stock to owners in the
         amount of $200,000.

May 1:   ABC Company paid $36,000 cash for office rent
         for May, June, and July.

May 3:   ABC Company purchased a parcel of land costing
         $60,000 by paying $25,000 in cash and agreeing
         to pay the remainder within sixty days.

May 9:   ABC Company provided $32,000 of services to a
         customer. The customer didn't pay any cash on
         May 9, but agreed to pay the balance due by the
         end of the month.

May 15:  ABC Company received and paid utility bills in
         the amount of $14,000.

May 18:  ABC Company sold the land purchased on May 3 for
         $79,000 cash.

May 21:  A customer paid $20,000 cash to ABC Company for
         services to be provided in June and July.

May 27:  The customer from May 9 paid the amount owed to
         ABC Company.

May 31:  ABC Company received a $9,000 bill for advertising
         done during May. No payment was made at this time.

Calculate ABC Company's net income for May.

Answer 1

Net loss = $3,000

Working

Date	Transaction No	Affects net income ?	Amount
1-May	Transaction 1	No
1-May	Transaction 2	Yes	$ (12,000.00)
3-May	Transaction 3	no
9-May	Transaction 4	Yes	$   32,000.00
15-May	Transaction 5	Yes	$ (14,000.00)
18-May	Transaction 6	No
21-May	Transaction 7	No
27-May	Transaction 8	No
31-May	Transaction 9	Yes	$   (9,000.00)
	Net income		$   (3,000.00)

*Rent is 36000 for 3 months so $12000 will be for 1 month .