1. Joe and Janice run an accounting firm. The firm receives $5,000,000 as income from its services. It pays an annual rent for office premises amounting to $240,000. The salary paid to staff amounted to $100,000. Other operating expenses added up to $24,000. What is the net income earned by their business?The total expenses of the accounting firm amounted to $364,000240,000340,000. Thus, the net income earned by the business is $4,760,0004,636,0004,660,000.
2. Debra is the purchase assistant. She bought a hard drive for the company's IT department. The accountant asked for a receipt for the purchase. Which accounting principle is the accountant complying with?
3. Jessica has brought in $10,000 of her personal funds to expand her business. How will it affect the accounting equation?