The following is selected information from J Corporation for the fiscal year end

ID: 2539309 • Letter: T

Question

The following is selected information from J Corporation for the fiscal year ending October 31, 2008.

Cash received from customers $300,000

Revenue earned 380,000

Cash paid for expenses 170,000

Cash paid for computers on November 1, 2007 that will be used

for 3 years (annual depreciation is $16,000) 48,000

Expenses incurred, not including any depreciation 200,000

Proceeds from a bank loan, part of which was used to pay for

the computers 100,000

Based on the accrual basis of accounting, what is J Corporation’s net income for the year ending October 31, 2008?

Income statement Amount Revenue earned 380000 Expense Expenses incurred 200000 Depreciation cost 16000 Total expense 216000 Net income 164000

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