Below is a list of transactions that took place in the first month of operations...
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Accounting
Below is a list of transactions that took place in the first month of operations (April) for Lawn Enforcement lawn care services. The owner contributed $5,000. Lawn Enforcement takes out a loan for $10,000 to purchase equipment Radio advertising was purchased for $2000. The spot will run from April through August. Lawn Enforcement had cash receipts from customers of $10,000. Of this amount, $2000 was prepaid by customers for work to be performed in May. The remaining cash receipts were from services performed in April. Salaries of $4000 were paid. A fuel bill of $500 was received from Watkins Oil Company for fuel purchased in April. It will be paid in May. The owner took a draw of $1000 from the business. $600 was paid toward the loan balance (for this problem, ignore interest) The cash balance at the end of the month was $2400. Depreciation expense on the equipment was $167. What will Lawn Enforcement report for net income for April?
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