A Sole Proprietorship Has the Following Transactions: the Business Receives

question 117

Multiple Choice

A sole proprietorship has the following transactions: The business receives $20,000 cash from the owner in exchange for capital.
The business purchases $700 of office supplies on account.
The business purchases $4,000 of furniture on account.
The business performs services for various clients totaling $11,000 on account.
The business pays $2,500 for salaries expense and $3,500 for rent expense.
The business pays $700 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 Receivable will appear as which of the following?

• A)Accounts Receivable
• B)Accounts Receivable
• C)Accounts Receivable
• D)Accounts Receivable

---

Definitions:

Misspelled Name

An error in the spelling of an individual's or entity's name, potentially affecting legal documents or contracts.

Illegal

Activities or actions that are prohibited by law or statute, and can lead to penalties or other legal consequences.

Endorsement For Deposit

A directive, usually on the back of a check, indicating that the check should be deposited into the account of the person named in the endorsement.

Restricts

Limits or confines actions, behaviors, or movements within certain parameters or conditions.