MC Qu. 3-170 During January 2018, the first month ... During January 2018, the first month of operations, a consulting firm had following transactions: Issued common stock to owners in exchange for $22,000 cash. Purchased $5,500 of equipment, paying $1,650 cash and signing a promissory note for $3,850. Received $9,900 in cash for consulting services performed in January. Purchased $1,650 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $17,600. Paid $825 on account. Paid $3,300 to employees for work performed during January. Received a bill for utilities for January of $3,750; the bill remains unpaid. What is the amount to be reported as total liabilities on the balance sheet at the end of January?

Question

Levi Cardenas

Business

4 October, 15:15

MC Qu. 3-170 During January 2018, the first month ... During January 2018, the first month of operations, a consulting firm had following transactions: Issued common stock to owners in exchange for $22,000 cash. Purchased $5,500 of equipment, paying $1,650 cash and signing a promissory note for $3,850. Received $9,900 in cash for consulting services performed in January. Purchased $1,650 of supplies on account; all of the supplies were used in January. Provided consulting services on account in the amount of $17,600. Paid $825 on account. Paid $3,300 to employees for work performed during January. Received a bill for utilities for January of $3,750; the bill remains unpaid. What is the amount to be reported as total liabilities on the balance sheet at the end of January?

+1

Answers (1)

Know the Answer?

Noah Hunter · Answer 1

total revenue to be reported on the income statement for the month of January is $27500

Explanation:

given data

common stock = $22,000 cash

equipment = $5,500

Purchased = $1,650

consulting services = $17,600

Received = $9,900

to find out

amount to be reported as total liabilities on the balance sheet at the end of January

solution

Cash revenue = $9,900

Credit revenue = $17,600

Total revenue = Cash revenue + Credit revenue ... 1

put here value we get by equation 1

Total revenue = 9900 + 17600

Total revenue = $27500

So total revenue to be reported on the income statement for the month of January is $27500