A Business Hired a Repair Service to Overhaul Its Plumbing

question 32

Essay

A business hired a repair service to overhaul its plumbing system.The repair service began work on September 15 and completed it on October 15.The business agreed to pay the service $4,000 when the work was completed.As of September 30,the work was 50% complete,and the business made an adjusting entry to accrue repair expense as of the end of September.On October 15,the work was completed,and the repair service was paid in full.Provide the journal entry for the cash payment on October 15.(Ignore explanation).

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Definitions:

Transfer of Shares

The process of moving ownership of shares from one party to another, either through sale, gift, or inheritance, commonly documented by a stock transfer form.

De Facto Corporation

A business entity that operates like a corporation but without legal incorporation status, often recognized by courts for liability purposes.

Defective Incorporation

A legal term referring to the situation where a company has been incorrectly or incompletely formed, potentially affecting its legal status and liabilities.

Personal Liability

The legal responsibility of an individual to settle debts or damages out of their own assets.