New business-transactions during first year of operations

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Reference no: EM13976768

Isabel Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. I. Lopez invests $61,000 cash and office equipment valued at $32,000 in the company in exchange for its common stock. b. The company purchased a $314,000 building to use as an office. Biz paid $50,000 in cash and signed a note payable promising to pay the $264,000 balance over the next ten years. c. The company purchased office equipment for $5,300 cash. d. The company purchased $3,100 of office supplies and $1,900 of office equipment on credit. e. The company paid a local newspaper $860 cash for printing an announcement of the office’s opening. f. The company completed a financial plan for a client and billed that client $4,900 for the service. g. The company designed a financial plan for another client and immediately collected an $8,000 cash fee. h. The company paid $1,300 cash in dividends to the owner. i. The company received $3,900 cash as partial payment from the client described in transaction f. j. The company made a partial payment of $950 cash on the equipment purchased in transaction d. k. The company paid $1,700 cash for the office secretary’s wages for this period what is the net income of the company.

Reference no: EM13976768

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