Following are transactions for valdez services, a company owned by brina valdez. a. brina valdez invests $39,350 cash in the company in exchange for common stock. b. the company provided $2,300 of services on credit. c. the company provided services to a client and immediately received $875 cash. d. the company received $10,200 cash from a client in payment for services to be provided next year. e. the company received $3,500 cash from a client in partial payment of an account receivable. f. the company borrowed $120,000 cash from the bank by signing a promissory note.

Question

Brenton Payne

Business

14 December, 19:52

Following are transactions for valdez services, a company owned by brina valdez. a. brina valdez invests $39,350 cash in the company in exchange for common stock. b. the company provided $2,300 of services on credit. c. the company provided services to a client and immediately received $875 cash. d. the company received $10,200 cash from a client in payment for services to be provided next year. e. the company received $3,500 cash from a client in partial payment of an account receivable. f. the company borrowed $120,000 cash from the bank by signing a promissory note.

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Answers (1)

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Eli Grant · Answer 1

CR Revenue $2,300

DR Receivable $2,300

CR Revenue $875

DR Cash $875

DR Cash $10,200

CR Prepaid Revenue $10,200

DR Cash $3500

CR Receivable $3500

Explanation:

Above are the journal entries relating to revenue as far as Valdez services is concerned.

I left out other transactions such as receipt of share payment as well as loan since the requirement specifically asked for revenue related transactions.