A Sole Proprietorship Has the Following Transactions: the Business Received $$\begin{array} { r | r r } 600 & 600 & \\&3,000 & \\\hline & 3,000& \mathrm { Bal. } \\\hline\end{array}$$

question 104

Multiple Choice

A sole proprietorship has the following transactions: The business received $20,000 cash from the owner in exchange for capital.
The business purchases $600 of office supplies on account.
The business purchases $3,000 of furniture on account.
The business performs services to various clients totaling $11,000 on account.
The business pays out $3,000 for salaries expense and $4,500 for rent expense.
The business pays $600 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 Payable will appear as
Which of the following?

• A) Accounts Payable \[\begin{array} { r | r r }
• 600 & 600 & \\
• &3,000 & \\
• \hline & 3,000& \mathrm { Bal. } \\
• \hline
• \end{array}\]
• B) Accounts Payable \[\begin{array} { r | r r }
• \hline & 600& \\
• & 3,000 & \\
• \hline & 3,600 & \mathrm { Bal. } \\
• \hline
• \end{array}\]
• C) Accounts Payable \[\begin{array} { l | r | r }
• & 600 & \\
• & 3,000 & \\
• & & 600 \\
• \hline \text { Bal. } & 3,000 & \\
• \hline
• \end{array}\]
• D) Accounts Payable \[\begin{array} { r | r r }
• & 600& \\
• & 3,000& \\
• &600 & \\
• \hline & 4,200 & \mathrm { Bal. } \\
• \hline
• \end{array}\]

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting principles for preparing financial statements to ensure consistency and transparency globally.

GAAP

Generally Accepted Accounting Principles refer to the commonly applied rules and standards in financial reporting and accounting.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules and standards for financial reporting that companies in the U.S. are required to follow to ensure consistency and comparability among financial statements.

IFRS

A collection of accounting standards established by the International Accounting Standards Board, intended for worldwide application, known as International Financial Reporting Standards.