The following transactions have been journalised 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 a $2 000 deposit and borrowing $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 credit from one of its clients.
What is the balance in Service revenue?

Question

The following transactions have been journalised 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 a $2 000 deposit and borrowing $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 credit from one of its clients.
What is the balance in Service revenue?

Quizplus · Accepted Answer

The balance in Service revenue is $4,000, as it represents the total amount billed to clients for services rendered, regardless of whether the cash has been collected.

The Following Transactions Have Been Journalised and Posted to the Proper