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Pack had the following transactions for 2006.

14. Pack had the following transactions for 2006.
· Sales on account, $6,000
· Collected $2,100 for services to be performed in 2007
· Paid $800 cash in salaries
· Purchased tickets in December for $500 for a 2007 trip
What’s Pack’s 2006 net income using accrual accounting?
A. $7,300
B. $5,200
C. $6,800
D. $4,700
E. $5,500

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Dear Student, Please find... View the full answer


Net Income = Revenue - Expenses
Net Income = $6,000 - $800
Net Income $5,200.00 Therefore, the correct option is (B).

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