Respuesta :
Answer:
Total revenue is $111,480
Total expenses is $67340
Net income $44140
Explanation:
Total revenue is a combination of cash and credit sales,which is calculated as follows:
Cash sales $30000
Credit sales $71480
Total sales $111,480
Total expenses could be determined by summing up the expenses paid for in cash and those incurred on account,calculation of which is shown below:
Cash expenses $26120
Expenses on account $41220
Total expenses $67340
Net income =total sales - total expenses
Net income =$111480-$67340
Net income =$44140
The rationale for including revenue and expenses on account is that accrual basis of accounting is being used,where revenue is recognized when earned and expenses when incurred.
Answer:
a. Total Revenues are $ 101,480
b. Total expenses are $ 67,340
Net income for July is $ 34,140
Explanation:
Total Revenues is Cash revenue + Revenues on credit
$ 30,000 ( cash)+ $ 71,480 ( on credit) = $ 101,480
Total expenses is Cash expenses + Expenses on account
$ 26,120 (cash)+ $ 41,220 (on account) = $ 67,340
Net income = Total revenues - Total expenses
Net Income = $ 101,480 - $ 67,340 = $ 34,140
