Use the Following Five Transactions for Monaco & Associates, Inc

question 192

Multiple Choice

Use the following five transactions for Monaco & Associates, Inc.to answer the question(s) . $$\begin{array}{lll}october&1&\text { Bills are sent to clients for services provided in September in the amount of \$ 800 .}\\&9&\text { Dravo Co. delivers office fumiture (\$ 1,060) and office supplies (\$ 160) to }\\&&\text { Monaco leaving an invoice for \$ 1,220 .}\\&15&\text { Payment is made to Dravo Co. for the furniture and office supplies delivered }\\&&\text { on October 9.}\\&23&\text { A bill for \$ 430 for electricity for the month of September is received and will }\\&&\text { be paid on its due date in November.}\\&31&\text { Salaries of \$ 850 are paid to employees.}\\\end{array}$$
-See the transactions to Monaco & Associates. The journal entry to record the October 31 transaction will include a credit to

• A) Salaries Expense
• B) Salaries Payable
• C) Prepaid Salaries
• D) Cash

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Definitions:

Reportable Segment

A distinguishable business unit or segment of an organization for which separate financial information is available and regularly reviewed by the company's management.

Intersegment Sales

Intersegment sales refer to transactions where one segment of a company sells goods or services to another segment of the same company, affecting intra-company revenues but not consolidated revenues.

Capital Expenditures

Payments made by a company to acquire or significantly improve the capacity or capabilities of long-term assets.

Interest Revenue

Income earned by an entity from lending money or making investments that bear interest.