The Following Transactions Have Been Journalized and Posted to the Proper

question 197

Multiple Choice

The following transactions have been journalized and posted to the proper accounts. March is the first month of business operations. Mar, 1 The business received $\$ 10,000$ cash and issued common stock to stockholders.
Mar. 2 Paid the first month's rent of $800.
Mar. 3 Purchased equipment by paying $4,000 cash and executing a note payable for $5,000.
Mar. 4 Purchased office supplies for $\$ 700 \mathrm { cash }$ .
Mar. 5 Filled a client for $\$ 14,000$ of design services completed.
Mar. 6 Received $\$ 6,000$ on account for the services previously recorded. What is the ending balance in the Service Revenue account?

• A) $16,000
• B) $10,000
• C) $14,000
• D) $6,000

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Definitions:

Limited Partnership

A partnership where at least one partner has limited liability for the debts of the business, while at least one other has full liability.

S Corporation

is a type of corporation in the United States that elects to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code, allowing income to be passed through to shareholders and taxed at individual rates.

Federal Income Tax

A charge imposed by the federal government of the United States on the yearly income of entities such as individuals, corporations, trusts, and various legal bodies.

Corporation

A legal entity recognized by law, created by individuals or shareholders, with rights and liabilities distinct from those of its owners.