ABC Company had the following transactions during the month. What would be the total amount of service revenue for the month if ABC Company uses the cash basis method? a. Paid $4,800 for insurance for the next 12 months. b. Received $6,000 for services to be performed equally over the next 12 months. c. Paid $1,300 for the current month's rent. d. Paid $300 cash for office supplies. e. Paid $850 in Salaries Expense. f. Received $1,500 in cash for service revenue earned this month. OA. $2,400 OB. $2,300 OC. $7,500 OD. $2,000
ABC Company had the following transactions during the month. What would be the total amount of service revenue for the month if ABC Company uses the cash basis method? a. Paid $4,800 for insurance for the next 12 months. b. Received $6,000 for services to be performed equally over the next 12 months. c. Paid $1,300 for the current month's rent. d. Paid $300 cash for office supplies. e. Paid $850 in Salaries Expense. f. Received $1,500 in cash for service revenue earned this month. OA. $2,400 OB. $2,300 OC. $7,500 OD. $2,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ABC Company had the following transactions during the month. What would be the total amount of service revenue for the month if ABC Company uses the cash basis
method?
a. Paid $4,800 for insurance for the next 12 months.
b. Received $6,000 for services to be performed equally over the next 12 months.
c. Paid $1,300 for the current month's rent.
d. Paid $300 cash for office supplies.
e. Paid $850 in Salaries Expense.
f. Received $1,500 in cash for service revenue earned this month.
A. $2,400
B. $2,300
OC. $7,500
D. $2,000
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