Following are transactions for Valdez Services, a company owned by Brina Valdez. A. Brina Valdez invested $20,000 cash in the company In exchange for common stock. B. The company provided services to a client and Immediately received $900 cash. C. The company recelved $10,000 cash from a client in payment for services to be provided next year. D. The company received $3,500 cash from a client in partial payment of accounts receivable. E. The company borrowed $5,000 cash from the bank by signing a note payable. Required: Examine the transactions and identify those that create revenues for Jade Services. Transaction ATransaction BTransaction CTransaction DTransaction EPrepare general Journal entries to record those transactions that created those revenues in the above given order.

Question

Business

Carlo Weaver

6 June, 08:35

Following are transactions for Valdez Services, a company owned by Brina Valdez. A. Brina Valdez invested $20,000 cash in the company In exchange for common stock. B. The company provided services to a client and Immediately received $900 cash. C. The company recelved $10,000 cash from a client in payment for services to be provided next year. D. The company received $3,500 cash from a client in partial payment of accounts receivable. E. The company borrowed $5,000 cash from the bank by signing a note payable. Required: Examine the transactions and identify those that create revenues for Jade Services. Transaction ATransaction BTransaction CTransaction DTransaction EPrepare general Journal entries to record those transactions that created those revenues in the above given order.

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Lucian Benitez · Answer 1

Transactions that create revenue:

Transaction B

Transaction C

Transaction D

Journal Entries:

Transaction B

Cash $900 (debit)

Sales Revenue $900 (credit)

Transaction C

Cash $10,000 (debit)

Unearned Revenue $10,000 (credit)

Transaction D

Cash $3,500 (debit)

Accounts Receivable $3,500 (credit)

Explanation:

Transactions that create revenue

Hint; Revenue is the increases in income that results in increases in assets and decreases in liabilities