To calculate the net income, we need to determine the total revenue and total expenses. Net income is calculated as total revenue minus total expenses. From the given data, we identify the revenue and expense accounts. Service Revenue is the only revenue account, while the expenses include Salaries Expense, Repairs Expense, Supplies Expense, and Gasoline Expense. We sum up the expenses and subtract them from the Service Revenue to find the net income.
Step 1: Identify Revenue and Expenses
The only revenue account is the Service Revenue, which is given as:
Service Revenue=7500
The expenses are as follows:
Salaries Expense: 6000
Repairs Expense: 900
Supplies Expense: 26000
Gasoline Expense: 1200
Step 2: Calculate Total Expenses
We sum the expenses:
Total Expenses=6000+900+26000+1200=34100
Step 3: Calculate Net Income
Net income is calculated by subtracting total expenses from total revenue:
Net Income=Service Revenue−Total Expenses=7500−34100=−26600