Which transaction involved check #0001?

Which transaction involved check #0001?

• A. July 7 equipment rental
• B. July 24 subcontractor
• C. July 4 advertising
• D. July 17 bicycle

Answer: (C)

Check numbers act as the exact identifier for each cash disbursement. When a payment is made by check, the check number is recorded with the date, payee, and amount so you can trace that specific outlay in the ledger. In this scenario, the first check issued is numbered 0001, and it was used for the July 4 advertising payment. So the transaction tied to check 0001 is the advertising expense paid on July 4. The corresponding journal entry would debit Advertising Expense and credit Cash/Bank for that amount, with the check number 0001 noted for reference. Other payments (like equipment rental, a subcontractor, or a bicycle) would have their own check numbers and aren’t associated with 0001.

Check numbers act as the exact identifier for each cash disbursement. When a payment is made by check, the check number is recorded with the date, payee, and amount so you can trace that specific outlay in the ledger. In this scenario, the first check issued is numbered 0001, and it was used for the July 4 advertising payment. So the transaction tied to check 0001 is the advertising expense paid on July 4. The corresponding journal entry would debit Advertising Expense and credit Cash/Bank for that amount, with the check number 0001 noted for reference. Other payments (like equipment rental, a subcontractor, or a bicycle) would have their own check numbers and aren’t associated with 0001.