Question

The following transactions have been journalized and posted to the proper accounts. 1. Mark Call invested $7,000 cash in his new design services business. 2. The business paid the first month's rent with $700 cash. 3. The business purchased equipment by paying $2,000 down and executing a note payable for $4,500. 4. The business purchased supplies for $850 cash 5. The business billed its clients a total of $4,000 for design services rendered. 6. The business collected $3,000 on account from one of its clients. What is the balance in Accounts receivable? $8,500 $1,000 $7,000 $4,000

Answer 1

As per HomeworkLib policy i have provided below answer of first 4 question for rest of question please raise new request....

a)	Computation of account receivable
	Credit sales		4000
	Less : Collection		-3000
	Account receivable		1000
	Correct answer is		1000
b)	Computation of account receivable
	Credit sales		10000
	Less : Collection		-8000
	Account receivable		2000
	Correct answer is		2000
c)	Service revenue =		4000
	Correct answer is		4000
d)	Computation of net income
	Sales		15000
	Less : rent		-2000
	Less : utility bill		-980
	Net income		12020
	correct answer is		12020