California Company opened for business on April 1. Given below is the activity of the company for the month of April
Owners invested cash in business $40,000
Credit sales $160,000
Cash sales $20,000
Cost of goods sold $124,000
Cash purchases of inventory $50,000
Credit purchases of inventory $100,000
Cash collections from credit customers $72,000
Cash payment for credit purchases of inventory $44,000
Cash borrowed on note payable $54,000
Equipment purchased for cash $18,000
Cash dividend paid $14,000
Wages earned and paid $28,000
Wages earned and unpaid $4,000
Rent paid for April, May and June $6,000
Under accrual basis accounting, what is the net income for the month of April?
A) $8,000
B) $12,000
C) $18,000
D) $22,000
D
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