CARLOS KNOWS REALTY In June of this year, Carlos Ivy set up a business under the
ID: 2586883 • Letter: C
Question
CARLOS KNOWS REALTY In June of this year, Carlos Ivy set up a business under the name of Carlos Knows Realty. The transactions (business events) completed during the month are as follows:
Date
1 Deposited $12,000 in a bank account entitled Carlos Knows Realty.
1 Paid office rent for the month, $900.
3 Bought supplies consisting of stationary, folders, and stamps for cash, $364.
4 Bought office equipment consisting of a calculator, personal computer, and a check writer on account from Baxter Company, $6,200.
8 Received bill from the Daily Times for advertising, $382.
15 Paid $900 to Baxter Company as part payment on purchase of office equipment recorded previously on 4th.
17 Earned sales commissions, receiving cash, $3,160.
25 Received and paid bill for utilities, $148.
26 Paid bill for advertising recorded previously on the 8th, $382.
27 Paid automobile expenses, $256.
30 Carlos withdrew cash for personal use, $1,030.
TO-DO: 1. Tell me, "how much money" (net income) did Carlos' business make in the first month of operations.
Explanation / Answer
Carlos Knows Realty
Income Statement
For the month ended.....
Carlos' business made $ 1,474 in the first month of operations.
$ $ Sales Commision Earned 3,160 Operating Expenses Rent Expense 900 Advertising Expense 382 Utilities Expense 148 Automobile Expense 256 Total Operating Expenses 1,686 Net Income 1,474