Olivet, Inc. has the following transactions during the month of May: May 1st: Prepaid three months of rent for $6,000, covering May through July. May 5th: Collected $56,000 payment in advance for work to be performed. $20,000 is performed in May and the rest in June. May 18th: Performed $7,500 of services, receiving $1,800 now and billing client for remainder. May 25th: Received $800 from client billed on May 18th. May 30th: Received utility bill for May of $4,000; will pay in June. What amount of net income would Olivet record for May under the accrual basis of accounting

Olivet, Inc.

Net income = $21,500

Explanation:

a) Data and Calculations:

Rent expense = $2,000 ($6,000/3)

Service Revenue:

Advance receipt =         $20,000

On account May 18th        7,500

Total Service Revenue $27,500

Utility expense = $4,000

b) Olivert, Inc. Income Statement for the month of May:

Service Revenue $27,500

Less Expenses:

Rent        $2,000

Utility         4,000    6,000

Net Income         $21,500

b) Olivert's net income of $21,500 represents the difference between the service revenue of $27,500 for the month of May and the expenses totaling $6,000.

a is the correct answer, tell me if im right

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.