The Following Transactions Have Been Journalized and Posted to the Proper

question 181

Multiple Choice

The following transactions have been journalized and posted to the proper accounts.March is the first month of business operations for the sole proprietorship. Mar. 1 The business received $\$ 7,000$ cash from the owner in excharige for capital.
Mar. 2 Paid the first month's rent of $\$ \mathbf { 8 0 0 }$ .
Mar. 3 Purchased equipment by paying $\$ 3,000$ cash and executing a note payable for $\$ 4,000$ .
Mar. 4 Purchased office supplies for $\$ 750 \mathrm { cash }$ .
Mar. 5 Billed a client for $\$ 12,000$ 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) $13,000
• B) $7,000
• C) $12,000
• D) $6,000

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Definitions:

Interest Rates

The percentage charged or paid for the use of money, typically expressed on an annual basis, affecting loans, savings, and investments.

Unlimited Liability

A legal structure where business owners are personally responsible for all of the company's debts and liabilities.

Partnership Interests

Shares of ownership in a partnership, entitling the partners to a portion of the partnership's profits and losses.

Depository Institution

A financial institution that accepts deposits from individuals and provides loan services.