Question

Springer Corporation had the following transactions in​ August: Earned $ 5 comma 000 of revenues on​ account; collected $ 6 comma 000 from a customer for services provided last​ month; incurred $ 800 of repair expense and paid​ cash; paid $ 600 for rent that it owed from the previous month. What is the net income in​ August?

Answer 1

Answer:

$4,200

Explanation:

Data provided in the question:

Revenue earned = $5,000

Amount collected from a customer for service = $6,000

Repair expense = $800

Rent paid = $600

Now,

we know

Net income = Revenue earned - Expense incurred

or

Net income = Revenue earned - Repair expense

Net income = $5,000 - $800

Net income = $4,200