Question

In: Accounting

The following transactions occurred for X Company in May 2020: Performed services for clients on account...

The following transactions occurred for X Company in May 2020:

Performed services for clients on account $9,671
Performed services for clients for cash 3,378
Incurred operating expenses on account 4,909
Paid salaries to employees 1,607
Collected cash from accounts receivable 7,221
Paid cash on accounts payable 3,357

What was the net effect of these transactions on May profit?

A: $3,546 B: $4,007 C: $4,528 D: $5,116 E: $5,781 F: $6,533

Solutions

Expert Solution

The Answer is F: $ 6,533

Working:

Income
Performed services on account $                    9,671
Performed services for cash $                    3,378
Less: Expenses
Incurred operating expenses on account $                  (4,909)
Paid salaries to employees $                  (1,607)
Profit $                    6,533

Notes:

1) Accounts receivables and payables information is not considered in profit calculation.

ekkarill92 answered 2 years ago
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