For the month of July, Blackfly Ltd. experienced/recorded the following transactions:received a $6000 cash payment for work performed & billed the previousmonth.replanted an area of northern Alberta forest for which it sent out an invoicetotaling $35000.. At the beginning of the month, the company had $2000 of trees in inventoryready for planting.During the month the company purchased $7000 tress for planting⚫ at the end of the month it was left with trees still suitable for planting thatoriginally cost $2500.monthly expenses were: $1500 for office rent; $3500 in misc. expenses;Amortization on the truck and office equipment was calculated to be $1500The income tax rate is 10%.Net Income for the month of July was$12305$5850$17900none of the listed answers are correct$5959$19800

Let's dissect the transactions and figure out the net income for July one step at a time. 1. Got…

Answered: For the month of July, Blackfly Ltd.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In June, Blackfly Ltd. received a $6,000 cash payment for work performed & billed the previous month. The company replanted a clear-cut area of northern Alberta for which it sent out an invoice for $20,000. At the beginning of the month the company had $1,000 of trees for planting. During the month the company purchased $2,000 more, and at the end of the month it was left with trees that had cost $1,000. The company's expenses were $1,000 in rent for its office and $3,000 in other expenses. Amortization on the truck and office equipment was calculated to be $1,500. The income tax rate is 10%. Net income for June was O$11,250 none of the listed answers are correct $15,500 $9,900 $10,800
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