Topeka Bike Company Received a $940 Check from a Customer

question 196

Multiple Choice

Topeka Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is

• A) debit Cash, $940; credit Accounts Receivable, $940.
• B) debit Cash, $450 and Accounts Receivable, $490; credit Service Revenue, $940.
• C) debit Cash, $450 and Service Revenue, $490; credit Accounts Receivable, $940.
• D) debit Accounts Receivable, $940; credit Cash, $450 and Service Revenue, $490.

---

Definitions:

Non-controlling Shareholders

Shareholders who own shares in a company but do not have sufficient voting power to influence the company's policies or decisions.

Ownership Interest

The proportion of shares or stake an individual or entity holds in a company, granting them rights and influence over the company.

Group Equity

The collective interest of all shareholders in the total equity of a conglomerate or group of companies under common control.

Ownership Interest

The proportion of an entity owned by a particular investor, reflecting the extent of their legal claim on assets and earnings.