The Following Transactions for the Month of March Have Been $\$ 10,000$

question 65

Multiple Choice

The following transactions for the month of March have been journalized and posted to the proper accounts of a sole proprietorship.
Mar. The business received $\$ 10,000$ cash from the owner of the business, Morris Tharps. The business gave capital to Mortis Tharps.
Mar. 2Paid the first month's rent of $\$ 1,000$ .
Mar. 3Purchased equipment by paying $\$ 2,000$ cash and executing a note payable for $\$ 5,000$ .
Mar. 4Purchased office supplies for $\$ 710 \mathrm { cash }$
Mar. 5Billed a client for $\$ 9,000$ of design services completed.
Mar. 6Received $\$ 7,600$ on account for the services previously recorded What is the balance in Cash on March 6?

• A) $14,890
• B) $13,890
• C) $15,890
• D) $15,600

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Definitions:

Cost of Goods Sold

Represents the total cost of all goods that were sold over a specific period, including the costs associated with production or purchase.

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the efficiency of a company in using its labor and supplies.

Net Sales

Revenue from sales transactions after deducting returns, allowances for damaged or missing goods, and any discounts offered.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period.