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

ID: 2334849 • 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 liabilities on September 30, 2015:

$3,990

$2,360

$1,460

$2,235

$460

$3,990

$2,360

$1,460

$2,235

$460

option B is correct, that is 2360

supplies purchased on credit is a liability, that is accounts payable.

advance received for providing service is unearned income , hence current liability.

Date Liability Amount ($) 7-Sep Accounts payable 460 10-Sep unearned revenue 1900 Total current liabilities 2360