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Following are the transactions for Quicky Computer Service’s first month of busi

ID: 2334847 • Letter: F

Question

Following are the transactions for Quicky Computer Service’s first month of business, September 2015:

                   

Sept  1        The owner invested $10,000 into the business in exchange for common stock.

         4        Purchased equipment for $2,800 in cash.

         7        Purchased supplies on credit for $460.

       10        Performed programming services, and received payment of $3,300.

       15        Received cash for programming services to be performed in October, $1,900.

       18        Paid the rent for September, $550

       20        Billed a customer for programming services performed, $1,630.

       27        Paid employee wages of $3,000.

       27        Collected $900 from customer billed on Sept. 20th

       28        Paid $1,800 for a one -year insurance policy beginning October, 1.

       28        Supplies used during the month amounted to $125.

Determine total current assets on September 30, 2015:

$10,815

$11,715

$9,015

$9,915

$13,615

A.

$10,815

B.

$11,715

C.

$9,015

D.

$9,915

E.

$13,615

Explanation / Answer

A. 10815

Working:

Sept 1 +10000

Sept 4 - 2800 (cash gone)

Sept 7 +460 (supplies purchased)

Sept 10 +3300 (cash comes in for services supplied)

Sept 15 +1900 (cash comes in for services to be supplied in October)

Sept 18 -550 (cash gone for rent paid)

Sept 20 +1630 +money to be rec'd is CA as customer billed )

Sept 27 -3000 (cash gone for salary paid )

Sept 27 -900 ( money to be recd decreases)

+900 (money rec'd)

Sept 28 -1800 (money paid )

+1800 (prepaid payments)

Sept 28 -125 (supplies decreased)