Diff: 2 LO: 2-3 Application AICPA Functional: Measurement 52) The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $9,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $800. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000. Mar. 4 Purchased Office Supplies for $750 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the balance in Accounts Receivable? A) $8,000 B) $2,000 C) $5,000 D) $10,000 Answer: B Explanation: B) Diff: 3 LO: 2-3 AACSB: Application AICPA Functional: Measurement 53) The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $9,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $800. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000. Mar. 4 Purchased office supplies for $750 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the ending balance in the Service Revenue account? A) $19,000 B) $9,000 C) $10,000 D) $8,000 Answer: C Explanation: C) Diff: 3
Diff: 2 LO: 2-3 Application AICPA Functional: Measurement 52) The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $9,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $800. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000. Mar. 4 Purchased Office Supplies for $750 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the balance in Accounts Receivable? A) $8,000 B) $2,000 C) $5,000 D) $10,000 Answer: B Explanation: B) Diff: 3 LO: 2-3 AACSB: Application AICPA Functional: Measurement 53) The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $9,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $800. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000. Mar. 4 Purchased office supplies for $750 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $8,000 on account for the services previously recorded. What is the ending balance in the Service Revenue account? A) $19,000 B) $9,000 C) $10,000 D) $8,000 Answer: C Explanation: C) Diff: 3
Test-Bank-for-Horngren-s-Financial-Managerial-Accounting-4E-4th-Edition.docx