Question

current attempt in progress
pharoah’s electronic repair shop started the year with total assets of $318000 and total liabilities of $213000. during the year, the business recorded $514000 in electronic repair revenues, $311000 in expenses, and pharoah withdrew $50300. the net income reported by pharoah’s electronic repair shop for the year was
$203000.
$155300.
$74700.
$277700.

Explanation:

Step1: Recall net income formula

Net Income = Revenues - Expenses

Step2: Substitute values

Revenues = $514000, Expenses = $311000
Net Income = $514000 - $311000 = $203000? Wait, no, wait. Wait, 514000 - 311000 is 203000? Wait, no, 514000 - 311000: 514000 - 300000 = 214000, then -11000 = 203000? But wait, the options have $203000 as an option. Wait, but let me check again. Wait, net income is revenues minus expenses. Withdrawals don't affect net income, they affect owner's equity. So revenues are 514000, expenses 311000. So 514000 - 311000 = 203000. Wait, but the options: first option is $203000. Wait, but let me check the numbers again. 514000 - 311000: 514 - 311 = 203, so 203000. Yes. So the net income is revenues minus expenses, withdrawals are for owner's drawings, not for net income.

Answer:

A. $203000