On december1 Doris opened a speech and learning clinic.during december,her firm had the following transaction involving revenue and expenss.did the firm earn a net income or incur a net loss for the period? what was th amount? Paid 2,600 for advertising.
provided service for 2,300 in cash
paid 700.00 for telephone service.
paid salaries of 2,100 to employees
provie svices for 2,500 on credit
paid 350.00 for office cleaning service.
To determine whether the firm earned a net income or incurred a net loss for the period, we need to calculate the total revenue and total expenses and then compare the two figures.
Here's how to calculate it:
1. Start with the revenue:
- The firm provided services for $2,300 in cash.
- The firm provided services for $2,500 on credit.
Total revenue: $2,300 + $2,500 = $4,800
2. Calculate the expenses:
- The firm paid $2,600 for advertising.
- The firm paid $700 for telephone service.
- The firm paid $2,100 for employee salaries.
- The firm paid $350 for office cleaning service.
Total expenses: $2,600 + $700 + $2,100 + $350 = $5,750
Now, we compare the total revenue and total expenses:
Total revenue - Total expenses: $4,800 - $5,750 = -$950
Since the result is negative (-$950), it means that the firm incurred a net loss for the period. The amount of the net loss is $950.