Question

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

Answer 1

$14,000

Step-by-step explanation:

As we can see that all the entries accept March 5 represents the payment, receipts, expense, etc

Moreover, the service revenue is recognized on due basis not on receipt basis so this case only March 5 transaction is considered i.e billed a client for design completion of service

Hence, the ending balance is $14,000