The following transactions have been journalized and posted to the proper accounts. March is the first month of business operations for the sole proprietorship. Mar. 1 The business received $ 9 comma 000 cash from the owner in exchange for capital. Mar. 2 Paid the first month's rent of $ 500. Mar. 3 Purchased equipment by paying $ 2 comma 000 cash and executing a note payable for $ 6 comma 000. Mar. 4 Purchased office supplies for $ 600 cash. Mar. 5 Billed a client for $ 11 comma 000 of design services completed. Mar. 6 Received $ 6 comma 000 on account for the services previously recorded. What is the ending balance in the Service Revenue account?

The ending balance is $ 6000 which will be the opening balance of the next month. Amount which is actually received is treated as income but the income which is not yet received is still not accounted for .

There fore the ending balance is $ 6000

Service Revenue

Debit Credit

Cash $ 6000

Bal $ 6000

omotayoadekoya1 omotayoadekoya1 · Answer 2 · 2020-02-14T19:11:57+01:00

Answer:

$11,000.

Step-by-step explanation:

Using the accrual basis of accounting, service revenue is recognized once the service and any other related obligation as agreed with the other party who benefits from the service provided.

Given that the client was billed for $ 11,000 of design services completed, irrespective of the amount collected, this represents the revenue earned and as such, the ending balance in the Service Revenue account is $11,000.