The Following Transactions Have Been Journalized and Posted to the Proper

question 214

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. 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:

Incorporated

The process of legally declaring a corporate entity as separate from its owners, providing legal protections and allowing for the raising of capital.

De Facto Corporation

A corporation that operates in all respects as a corporation despite not having completed the formalities required for legal recognition.

Ultra Vires

Actions or activities conducted by a corporation or its officers that lie beyond the powers granted by its charter or the laws.

Ultra Vires Contract

A contract that exceeds the powers granted to a corporation by its charter or bylaws.