long - term notes payable $50,000\naccounts receivable $28,000\naccounts payable $37,000\nbuilding…

long - term notes payable $50,000\naccounts receivable $28,000\naccounts payable $37,000\nbuilding $55,000\ncash and cash equivalents $80,000\nsalaries expense $25,500\ncommon stock $140,000\ninterest payable $1,500\nland $40,000\nshort - term investments $5,000\nincome taxes payable $10,000\nequipment $59,500\nsupplies $5,000\nservice revenue $104,000\nsupplies expense $23,000\nutilities expense $9,500\nincome tax expense $12,000\nwhat is net income?\na. $140,000\nb. $104,000\nc. $59,500\nd. $34,000

long - term notes payable $50,000\naccounts receivable $28,000\naccounts payable $37,000\nbuilding $55,000\ncash and cash equivalents $80,000\nsalaries expense $25,500\ncommon stock $140,000\ninterest payable $1,500\nland $40,000\nshort - term investments $5,000\nincome taxes payable $10,000\nequipment $59,500\nsupplies $5,000\nservice revenue $104,000\nsupplies expense $23,000\nutilities expense $9,500\nincome tax expense $12,000\nwhat is net income?\na. $140,000\nb. $104,000\nc. $59,500\nd. $34,000

Answer

Explanation:

Step1: Identify revenue and expenses

Revenue = Service Revenue = $104,000. Expenses = Salaries Expense+ Supplies Expense + Utilities Expense+ Income Tax Expense = $25,500 + $23,000+ $9,500 + $12,000.

Step2: Calculate total expenses

$25,500 + $23,000+ $9,500 + $12,000 = $70,000$.

Step3: Calculate net - income

Net income = Revenue - Expenses = $104,000 - 70,000$.

Answer:

C. $59,500$