Acquired $60,000 cash from the issue of common stock. Received an $8,200 cash advance for services to be provided in the future.
Purchased $2,000 of supplies on account. Earned $36,000 of service revenue on account. Incurred $16,100 of operating expenses on account. Collected $28,500 cash from accounts receivable. Made a $15,100 payment on accounts payable. Paid a $2,000 cash dividend to the stockholders. Recognized $1,600 of supplies expense. Recorded $3,100 of accrued salaries expense. Recognized $3,100 of revenue for services provided to the customer in Event 2. Required
a.
Record the events in T-accounts and determine the ending account balances.
b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance
Answer:B. She is entitled to recover the damages if she can show that Roland agreed to pay such damages in his contract with her.
Explanation:
The non payment of the N500 installment by Roland constitute a breach of the sales contract, However an evidence of a commitment to be liable for additional cost that will be incurred will make it possible for Selina to recover the damages.
