A Sole Proprietorship Has the Following Transactions: the Business Receives $$\begin{array} { r | r r } \hline 2,000 & 11,000& \\\hline & 9,000 & \mathrm { Bal }\end{array}$$

question 30

Multiple Choice

A sole proprietorship has the following transactions: The business receives $20,000 cash from the owner in exchange for capital.
The business purchases $700 of office supplies on account.
The business purchases $4,000 of furniture on account.
The business performs services for various clients totaling $11,000 on account.
The business pays $2,500 for salaries expense and $3,500 for rent expense.
The business pays $700 to a supplier for the office supplies purchased earlier.
The business collects $2,000 from one of its clients for services rendered earlier in the month.
At the end of the month,all journal entries are posted to the ledger.Accounts Receivable will appear as which of the following?

• A) Accounts Receivable \[\begin{array} { r | r r }
• \hline 2,000 & 11,000& \\
• \hline & 9,000 & \mathrm { Bal }
• \end{array}\]
• B) Accounts Receivable \[\begin{array} { | l | l | }
• \hline & 11,000 \\
• \hline \text { Bal. } & 11,000 \\
• \hline
• \end{array}\]
• C) Accounts Receivable \[\begin{array} { | r | r | r | }
• \hline & 11,000 & 2,000 \\
• \hline \text { Bal. } & 9,000 & \\
• \hline
• \end{array}\]
• D) Accounts Receivable \[\begin{array} { c | c c }
• \hline 11,000 & 2,000 & \\
• \hline & 9,000& \mathrm { Bal. } \\
• \hline
• \end{array}\]

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Definitions:

EIN

An Employer Identification Number, issued by the IRS, used for identifying a business entity and for tax filing purposes.

Form SS-4

The form filled out by an employer to get an EIN. The form is sent to the IRS, which assigns the number to the business.

Payroll Tax Expense

Tax that a business must pay based on the wages and salaries of its employees, including social security, Medicare, and unemployment taxes.

FICA

The Federal Insurance Contributions Act, which funds Social Security and Medicare, requiring employers and employees to pay a percentage of earnings.