An electronics store had the following transactions in February:
- Sold $90,000 of goods to customers, receiving $65,000 in cash and the remainder on account. The inventory had an original cost of $36,000.
- Purchased $16,000 of inventory, paid $12,000 in cash and the rest remained on account.
- Paid $2,000 for wages that were owed to employees from January.
- Received a customer order and payment of $9,000 for an audio system to be delivered and installed in March
- By February 28, accrued wages were $14,000.
What would Net Income (on an accrual basis) for the month of February would be?
The Rest Of TheVideos
| 1 | Not completed | Cash vs. Accrual Accounting | 8 min |
| 2 | Not completed | Expense Recognition | 9 min |
| 3 | Not completed | Accruals and Deferrals | 16 min |
| 4 | Not completed | What is an Adjusting Entry? | 5 min |
| 5 | Not completed | Adjusting Entry: Supplies | 2 min |
| 6 | Not completed | Adjusting Entry: Wages | 5 min |
| 7 | Not completed | Adjusting Entry: Unearned Revenue | 3 min |
| 8 | Not completed | Adjusting Entry: Interest | 3 min |
| 9 | Not completed | Contra-accounts | 5 min |
| 10 | Not completed | Depreciation | 8 min |
| 11 | Not completed | Current Assets | 10 min |
| 12 | Not completed | Non-Current Assets | 11 min |
| 13 | Not completed | Current Liabilities | 7 min |
| 14 | Not completed | Non-Current Liabilites | 2 min |
| 15 | Not completed | The Classified Balance Sheet | 5 min |
| 16 | Not completed | Contributed Capital | 6 min |
| 17 | Not completed | Retained Earnings vs Shareholder's Equity | 7 min |
| 18 | Not completed | The Multistep Income Statement | 13 min |
| 19 | Not completed | The Closing Process | 11 min |
| 20 | Not completed | Ratios: Working Capital | 3 min |
| 21 | Not completed | Ratios: Current Ratio | 4 min |
Chapter 3Practice Problems
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