Question
On September 1, 2015, Richard started a small business called Ricky Rock Wrestling for Fun. Ricky Rock offers a party package designed for active kids,
On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.
The following transaction occurred during the first month of operations, please indicate how the adjusting journal entry (AJE) at the end of September should be recorded:
September | Description | Amount | |
3 | Paid in cash the set up of the web site. It expects to last the whole life of this business. | $ | 2,000 |
Multiple Choice
Dr. Depreciation Web site 1,000 and Cr. Accumulated Depreciation Web site 1,000
Dr. Web site 2,000 and Cr. Cash 2,000
The transaction does not need an AJE
Dr. Depreciation Costumes 83.33 and Cr. Accumulated Depreciation Costumes 83.33
None of the other journal entries are correct, it is another journal entry
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