Jan 1 purchased a two-year insurance policy for cash 8400


Question - The following transactions for Habari Company occurred during January 2017:

Jan 1 Purchased a two-year insurance policy for cash, $8,400.

Jan 4 Paid utilities bill that was received in December 2015, $450.

Jan 9 Performed a service on account, $12,000.

Jan 16 Paid monthly salary to employees, $2,700.

Jan 21 Received $18,000 from a customer on account.

Jan 25 Received $600 from January 9 transaction.

Jan 31 Prepared the adjusting entry for insurance from January 1 transaction.

Jan 31 Accrued wages of $2,750.

Do not enter commas, spaces, decimals, or dollar signs in your answer. For example, if your answer is $2,333, then enter it as 2333

If your answer is negative, i.e. a net loss of $2,333, then enter your answer in brackets without commas, spaces, decimals, or dollar signs as: (2333)

What is the amount of income under the cash basis?

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Accounting Basics: Jan 1 purchased a two-year insurance policy for cash 8400
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