The following events apply to Pearson Service Co. for Year 1, its first year of operation:

1. Received cash of $63,000 from the issue of common stock.

2. Performed $122,500 worth of services on account.

3. Paid $83,500 cash for salaries expense.

4. Purchased supplies for $18,500 on account.

5. Collected $97,500 of accounts receivable.

6. Paid $13,700 of the accounts payable.

7. Paid a $6,300 dividend to the stockholders.

8. Had $2,150 of supplies on hand at the end of the period.

Required

Determine the amount of net income for Year 1.

Complete this question by entering your answers in the tabs below. Determine the amount of net income for Year 1