Classic Artists' Services hired a maintenance man to maintain a building that it will use for office purposes.The maintenance man will begin work on February 1 and work through till May 31.Classic Artists' will pay the maintenance man $4,000 at the end of May.It accrues Maintenance Expense at the end of every month.What is the balance in the Accounts Payable account for amounts owed to the maintenance man at the end of March?

Question

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By the end of March, the maintenance man has worked for two months (February and March), so Classic Artists' owes him $2,000 for each month, totaling $2,000. This amount is recorded as a credit balance in Accounts Payable.

Classic Artists' Services Hired a Maintenance Man to Maintain a Building