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 $ 9 comma 000 cash from the owner in exchange for capital. Mar. 2 Paid the first month's rent of $ 500. Mar. 3 Purchased equipment by paying $ 2 comma 000 cash and executing a note payable for $ 6 comma 000. Mar. 4 Purchased office supplies for $ 600 cash. Mar. 5 Billed a client for $ 11 comma 000 of design services completed. Mar. 6 Received $ 6 comma 000 on account for the services previously recorded. What is the ending balance in the Service Revenue account?

Question

Jaylen Stephenson

Mathematics

25 June, 09:55

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 $ 9 comma 000 cash from the owner in exchange for capital. Mar. 2 Paid the first month's rent of $ 500. Mar. 3 Purchased equipment by paying $ 2 comma 000 cash and executing a note payable for $ 6 comma 000. Mar. 4 Purchased office supplies for $ 600 cash. Mar. 5 Billed a client for $ 11 comma 000 of design services completed. Mar. 6 Received $ 6 comma 000 on account for the services previously recorded. What is the ending balance in the Service Revenue account?

+5

Answers (1)

Know the Answer?

Haven Vega · Answer 1

The ending balance is $ 6000

Step-by-step explanation:

Received $ 6 comma 000 on account for the services previously recorded.

The ending balance is $ 6000 which will be the opening balance of the next month. Amount which is actually received is treated as income but the income which is not yet received is still not accounted for.

There fore the ending balance is $ 6000

Service RevenueDebit Credit

Cash $ 6000

Bal $ 6000