200 On June 18,Baltic Arena paid $6,600 to Marvin Maintenance,Inc.for cleaning the arena following a monster truck show.Which of the following most likely occurred on Baltic's books as a result of this transaction?

Question

Quizplus · Accepted Answer

The transaction involves Baltic Arena making a payment of $6,600, which means the cash account, which is a part of the assets, would decrease by $6,600. As there is no mention of any credit sales or an increase in liabilities, options A and D can be eliminated. Option B is incorrect because paying for a service does not increase the total assets, it only decreases a part of it. Therefore, the most likely occurrence on Baltic's books is that the cash account was credited.

200 on June 18,Baltic Arena Paid $6,600 to Marvin Maintenance,Inc