QQuestionAccounting
QuestionAccounting
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:
Andrea invested $14,700 cash in the business in exchange for common stock.
Andrea contributed $32,000 of photography equipment to the business.
The company paid $3,300 cash for an insurance policy covering the next 24 months.
The company received $6,900 cash for services provided during January.
The company purchased $7,400 of office equipment on credit.
The company provided $3,950 of services to customers on account.
The company paid cash of $2,700 for monthly rent.
The company paid $4,300 on the office equipment purchased in transaction #5 above.
Paid $395 cash for January utilities.
# Multiple Choice
## $\square$
$\$ 57,050$.
## $\square$
$\$ 14,855$.
## $\square$
$\$ 10,905$.
## $\square$
$\$ 22,300$.
## $\square$
$\$ 17,650$.
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Answer
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Step 1: Calculate the total amount of cash and investments made by Andrea into the business.
Total\; Investment = $14,700 + $32,000 = $46,700
Step 2: Calculate the total amount of revenues and gains for the company during January.
Total\; Revenues = $6,900 + $3,950 = $10,850
Final Answer
The net income for Apple Photography during January is $57,055.
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