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ACCT 504-Accounts Receivable $20,000

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January 4th, 2018

Accounts Receivable$20,000Cost of Goods Sold95,000Utilities Expense3,500Accounts Payable7,000Common Stock100,000Rent Expense5,500Advertising Expense9,000Dividends10,000Insurance Expense2,000Note Payable (due 2014)50,000Depreciation Expense10,000Prepaid Insurance18,000Accumulated Depreciation30,000Retained Earnings (beginning)33,000Salaries Expense40,000Salaries Payable4,500Net sales170,000Supplies3,000Supplies Expense2,500Instructions(a) Calculate the net income. (18 points)

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