Modern Artists' Services Signed a Contract with a Maintenance Service

question 188

Multiple Choice

Modern Artists' Services signed a contract with a maintenance service company to maintain a building that Modern Artists' will use as an office.The contract states that the work will begin on February 1 and end on May 31.Modern Artists' will pay the maintenance service company $8,000 at the end of May.It accrues Maintenance Expense at the end of every month.What is the balance in the Accounts Payable account for amounts owed to the maintenance service company at the end of March?

• A) Debit balance of $8,000
• B) Credit balance of $4,000
• C) Debit balance of $4,000
• D) Credit balance of $8,000

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The act, state, or right of possessing something, typically property, goods, or intellectual property.

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