The following transactions have been journalized and posted to the proper accounts.March is the first month of business operations for the sole proprietorship. Mar. 1 The business received $\$ 7,000$ cash from the owner in excharige for capital.
Mar. 2 Paid the first month's rent of $\$ \mathbf { 8 0 0 }$.
Mar. 3 Purchased equipment by paying $\$ 3,000$ cash and executing a note payable for $\$ 4,000$.
Mar. 4 Purchased office supplies for $\$ 750 \mathrm { cash }$.
Mar. 5 Billed a client for $\$ 12,000$ 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?
A) $13,000
B) $7,000
C) $12,000
D) $6,000

Question

Quizplus · Accepted Answer

The Service Revenue account would only include the amount billed to the client for services provided, which is $12,000. Transactions related to cash, equipment, supplies, or notes payable do not affect the Service Revenue account.

The Following Transactions Have Been Journalized and Posted to the Proper