A business has the following transactions:• The business is started by receiving cash from an investor in exchange for common stock $20,000• The business purchases supplies on account $500• The business purchases furniture on account $2,000• The business renders services to various clients on account totaling $9,000• The business pays salaries $2,000• The business pays this month’s rent $3,000• The business pays for the supplies purchased on account.• The business collects from one of its clients for services rendered earlier in the month $1,500.What is total income for the month?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 19EA: A business has the following transactions: The business is started by receiving cash from an...
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A business has the following transactions:
• The business is started by receiving cash from an investor in exchange for common stock $20,000
• The business purchases supplies on account $500
• The business purchases furniture on account $2,000
• The business renders services to various clients on account totaling $9,000
• The business pays salaries $2,000
• The business pays this month’s rent $3,000
• The business pays for the supplies purchased on account.
• The business collects from one of its clients for services rendered earlier in the month $1,500.
What is total income for the month?

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