At the end of the first quarter three months of operations


Question - "LMN Company was organized on January 1, 2018. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown below. What is net income?

• Services performed for customers, $85,000, of which $15,000 remained uncollected at the end of the quarter.

• Small service truck purchased at the end of the quarter to be used in the business for two years starting the next quarter: cost, $8,000 cash.

• Operating expenses, $31,000, of which one-half remained unpaid at the end of the quarter."

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Accounting Basics: At the end of the first quarter three months of operations
Reference No:- TGS02932619

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