Questions: Determine the net income of a company for which the following information is available for the month of September. Service revenue 320,000 Rent expense 58,000 Utilities expense 4,200 Salaries expense 91,000

Determine the net income of a company for which the following information is available for the month of September.
Service revenue 320,000
Rent expense 58,000
Utilities expense 4,200
Salaries expense 91,000

Transcript text: Determine the net income of a company for which the following information is available for the month of September. \begin{tabular}{lr} Service revenue & $\$ 320,000$ \\ Rent expense & 58,000 \\ Utilities expense & 4,200 \\ Salaries expense & 91,000 \end{tabular}

Solution

Solution Steps

To determine the net income of the company, we need to subtract the total expenses from the service revenue. The total expenses are the sum of rent expense, utilities expense, and salaries expense.

Step 1: Identify the Given Data

We are given the following information for the month of September:

Service revenue: $ \$320,000 $
Rent expense: $ \$58,000 $
Utilities expense: $ \$4,200 $
Salaries expense: $ \$91,000 $

Step 2: Calculate Total Expenses

The total expenses are the sum of the rent expense, utilities expense, and salaries expense: \[ \text{Total Expenses} = \$58,000 + \$4,200 + \$91,000 = \$153,200 \]

Step 3: Calculate Net Income

Net income is calculated by subtracting the total expenses from the service revenue: \[ \text{Net Income} = \$320,000 - \$153,200 = \$166,800 \]