On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks. The following transaction occurred during the first month of operations, please indicate how the adjusting journal entry (AJE) at the end of September should be recorded: September 24 Description Telephone bill for $150 was received for the month of September payment due October 5th Amount $ 150

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks. The following transaction occurred during the first month of operations, please indicate how the adjusting journal entry (AJE) at the end of September should be recorded: September 24 Description Telephone bill for $150 was received for the month of September payment due October 5th Amount $ 150

Name: Multiple ChoiceOO0OThe economic event does not need a journal entryDr
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Description: Multiple ChoiceOO0OThe economic event does not need a journal entryDr. Revenue 1,000 and Cr. Cash 1,000None of the other journal entries are correct, it is another journal entryDr. Cash 1,000 and Cr. Revenue 1,000Dr. Accounts Receivables 1,000 and C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

Multiple Choice
O
O
0
O
The economic event does not need a journal entry
Dr. Revenue 1,000 and Cr. Cash 1,000
None of the other journal entries are correct, it is another journal entry
Dr. Cash 1,000 and Cr. Revenue 1,000
Dr. Accounts Receivables 1,000 and Cr. Revenue 1,000
Help
Sa

On September 1, 2015, Richard started a small business called "Ricky Rock Wrestling for Fun". "Ricky Rock" offers a party package designed for active kids, teen and adults
that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors and other tricks.
The following transaction occurred during the first month of operations, please indicate how the adjusting journal entry (AJE) at the end of September should be recorded:
September
24
Description
Telephone bill for $150 was received for the month of
September
payment due October 5th
-
Amount
$ 150

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