Question
Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2017, by investing $25,200 of their cash savings in the
Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range on March 1, 2017, by investing $25,200 of their cash savings in the business. A caddy shack was constructed for cash at a cost of $7,700, and $770 was spent on golf balls and golf clubs. The Ramons leased five acres of land at a cost of $1,200 per month and paid the first months rent. During the first month, advertising costs totaled $700, of which $160 was unpaid at March 31, and $420 was paid to members of the high-school golf team for retrieving golf balls. All revenues from customers were deposited in the companys bank account. On March 15, Anya and Nick withdrew a total of $1,150 in cash for personal living expenses. A $120 utility bill was received on March 31 but was not paid. On March 31, the balance in the companys bank account was $18,900. Anya and Nick thought they had a pretty good first month of operations. But, their estimates of profitability ranged from a loss of $6,100 to net income of $1,890. Answer the following.
Without preparing an income statement, determine the actual net income for March.
Net income:_____________?
What was the revenue recognized in March?
Revenues earned: _________?
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