The Following Transactions Have Been Journalized and Posted to the Proper

question 34

Essay

The following transactions have been journalized and posted to the proper accounts. 1.Mark Call invested $7,000 cash in his new design services business.
2)The business paid the first month's rent with $700 cash.
3)The business purchased equipment by paying $2,000 down and executing a note payable for $4,500.
4)The business purchased supplies for $850 cash.
5)The business billed its clients a total of $4,000 for design services rendered.
6)The business collected $3,000 on account from one of its clients.
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What is the total amount of assets after all the above transactions have been completed?
A) $7,800
B) $13,800
C) $12,800
D) $14,800

• A) $7,800
• B) $13,800
• C) $12,800
• D) $14,800

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Definitions:

Pre-numbered

Pre-numbered refers to documents or forms that are sequentially numbered in advance, aimed at preventing fraud and ensuring completeness in record-keeping.

Internal Control

Mechanisms and steps a firm takes to confirm the trustworthiness of its financial and accounting reports, enhance accountability, and stop fraudulence.

Controls

Procedures or policies implemented by a company to safeguard its assets, enhance the reliability of its accounting records, increase efficiency, and ensure compliance with laws and regulations.

NSF Check

a check that has been returned by a bank because the account it was drawn on does not have sufficient funds.