Question

The following transactions have been journalized and posted to the proper accounts. march is the first month of business operations

mar. 1: the business received $10,000 cash and issued common stock to stockholders
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 $5,000
mar. 4: purchased office supplies for $700 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?

Answer 1

The ending balance in the service revenue account would be $14,000, as this is the amount billed for design services and not affected by the subsequent cash collection on account.

Step-by-step explanation:

The ending balance in the service revenue account would be affected only by transactions related to service revenue. In this case, the only transaction affecting service revenue is the billing of a client for $14,000 of design services completed on March 5. The cash received on March 6 is a collection on account for the services previously billed and does not affect the service revenue account.

Therefore, the ending balance in the service revenue account would remain $14,000.