Issued $25,000 of QCI stock for cash. Incurred $600 of utilities costs this month and will pay them next month. Incurred and paid wages for the current month, totaling $2,000. Performed cleaning services on account worth $2,800. Some of Quick Cleaners’s equipment was repaired at a total cost of $150. The company paid the full amount at the time the repair work was done. Required: Prepare journal entries for the above transactions, which occurred during a recent month. Determine QCI’s preliminary net income.

a. Based on the information given we were told that the amount of $25,000 of QCI stock for cash was issued which means that the Journal entry will be :

Dr Cash 25,000

Cr Common Stock 25,000

b. Based on the information given we were told that they Incurred the amount of $600 of utilities costs which means that the Journal entry will be :

Dr Utilities expense 600

Cr Utilities payable 600

c. Based on the information given we were told that the company Incurred and as well paid wages totaling the amount of $2,000 which means that the Journal entry will be :

Dr Wages expense 2,000

Cr Cash 2,000

d. Based on the information given we were told that the company Performed cleaning services that cost $2,800 which means that the Journal entry will be:

Dr Account receivable 2,800

Cr Service revenue 2,800

e. Based on the information given we were told that the Cleaners’s equipment was repaired at the amount of $150 which means that the Journal entry will be :

Dr Repairs expense 150

Cr Cash 150

2) Calculation for the Net income

Net income = 2,800-2,000-150-600

Net income = $50

Therefore net income will be $50