The Following Transactions for the Month of March Have Been

question 42

Multiple Choice

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 Martinez invested $9,000 cash in his new design services business.
Mar. 2 Paid the first month's rent of $800.
Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000.
Mar. 4 Purchased office supplies for $750 cash.
Mar. 5 Billed a client for $10,000 of design services completed.
Mar. 6 Received $8,000 on account for the services previously recorded.
What is the ending balance in the Service Revenue account?

• A)$19,000
• B)$9,000
• C)$10,000
• D)$8,000

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Definitions:

Nondurable Goods

Items with a short life span which are consumed or used up quickly, such as food and most consumer packaged goods.

Services

Intangible products such as healthcare, education, and financial advice that are consumed at the point of sale and do not result in ownership of any physical or digital goods.

Thorstein Veblen

An American economist and sociologist known for his theories on the socio-economic impacts of conspicuous consumption and leisure.

Consumption

The process by which goods and services are utilized by consumers, leading to a decrease in their quantity or quality, reflecting the end phase of economic activity.