The following is selected information from J Corporation for the fiscal year end

Question

The following is selected information from J Corporation for the fiscal year ending October 31, 2008. Cash received from customers $300,000 Revenue earned 380,000 Cash paid for expenses 170,000 Cash paid for computers on November 1, 2007 that will be used for 3 years (annual depreciation is $16,000) 48,000 Expenses incurred, not including any depreciation 200,000 Proceeds from a bank loan, part of which was used to pay for the computers 100,000 Based on the accrual basis of accounting, what is J Corporation’s net income for the year ending October 31, 2008?

Explanation / Answer

Solution:

J Corporation Computation of Net Income For year ended October 31, 2008 Particulars Amount Revenue $380,000.00 Expenses Incurred (Excluding depreciation) $200,000.00 Depreciation $16,000.00 Net Income $164,000.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.