Question

Following are transactions for Valdez Services, a company owned by Brina Valdez.

1. Brina Valdez invested $27,300 cash in the company.
2. The company provided services to a client and immediately received $840 cash.
3. The company received $13,700 cash from a client in payment for services to be provided next year.
4. The company received $2,100 cash from a client in partial payment of accounts receivable.
5. The company borrowed $4,800 cash from the bank by signing a note payable.

1. Prepare general journal entries for the above transactions of Valdez Services.

Answer 1

No	General Journal	Debit	Credit
1	Cash	$27,300
	Capital, Brina Valdez		$27,300
	(To record investment)
2	Cash	$840
	Service revenue		$840
	( To record service revenue)
3	Cash	$13,700
	Unearned service revenue		$13,700
	( To record unearned service revenue)
4	Cash	$2,100
	Accounts receivable		$2,100
	( To record cash collection from accounts receivable)
5	Cash	$4,800
	Note payable		$4,800
	( To record amount received by note payable)

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