Use the Following Five Transactions for Morton & Associates, Inc

question 117

Multiple Choice

Use the following five transactions for Morton & Associates, Inc. to answer the questions.
May 1 Bills are sent to clients for services provided in April in the amount of $800.
9 Techno, Inc. delivers office furniture $1,060 and office supplies $160 to Morton leaving an invoice for $1,220.
15 Payment is made to Techno, Inc. for the furniture and office supplies delivered on May 9.
23 A bill for $430 for electricity for the month of April is received and will be paid on its due date in June.
31 Salaries of $850 are paid to employees.
-See the transactions to Morton & Associates. The journal entry to record the May 23 transaction will include an increase of $430 to

• A) Accounts Receivable
• B) Cash
• C) Prepaid Expenses
• D) Accounts Payable

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Definitions:

Statutes

Laws established by a legislative body governing behavior and setting forth the legal responsibilities and duties of parties.

Free Contractual Nature

Describes the principle that parties are free to negotiate and enter into contracts without undue interference or restrictions.

Common Law

A legal system based on precedents and judicial decisions rather than statutory laws, originating in England and used in many countries.

Lawful Picketing

Lawful picketing refers to legally protected protest activity by workers outside of a workplace to publicize a dispute, typically regarding labor issues, without breaching peace or law.