Norris Company experienced the following transactions during

Norris Company experienced the following transactions during 2013, its first year in operation. 1. Issued $8,400 of common stock to stockholders. 2. Provided $4,700 of services on account. 3. Paid $2,200 cash for operating expenses. 4. Collected $3,100 of cash from accounts receivable 5. Paid a $220 cash dividend to stockholders. The amount of net income recognized on Norris Company\'s 2013 income statement is:

Solution

The Answer is “ $2,500 “

Service revenue recognized on the service provided on account

$4,700

Less : Cash paid for operating expenses

($2,200)

Net Income recognized

$2,500

The amount of net income recognized on Norris Company\'s 2013 income statement is $2,500

Service revenue recognized on the service provided on account	$4,700
Less : Cash paid for operating expenses	($2,200)
Net Income recognized	$2,500