Question
Best Plumbing Company provides plumbing services. Selected transactions of Best Plumbing Company are described as follows: a) Received a $9,000 cash contribution from the owner,
Best Plumbing Company provides plumbing services. Selected transactions of Best Plumbing Company are described as follows:
a) Received a $9,000 cash contribution from the owner, June Sharon.
b) Paid $6,000 cash for equipment to be used for plumbing repairs.
c) Borrowed $9,000 from a local bank and deposited the money in the checking account.
d) Paid $800 rent for the year.
e) Paid $200 cash for plumbing supplies to be used next year.
f) Completed a plumbing repair project for a local lawyer and received $6,000 cash.
Calculate the net income. Assume plumbing supplies of $200 are left.
The following transactions for March have been journalized and posted to the proper accounts.
Mar. 1 The business received a $10,000 cash contribution from the owner.
Mar. 2 Paid the first month's rent of $800.
Mar. 3 Purchased equipment by paying $4,000 cash and executing a note payable for $6,000.
Mar. 4 Purchased office supplies for $500 cash.
Mar. 5 Billed a client for $14,000 of design services completed.
Mar. 6 Received $6,000 on account for the services previously recorded.
What is the ending balance in the Service Revenue account?
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