6 Exercise 2-12 Analyzing and journalizing transactions involving receipt of cas

Question

6 Exercise 2-12 Analyzing and journalizing transactions involving receipt of cash LO P1 Following are transactions for Valdez Services, a company owned by Brina Valdez. nts 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 received $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. 1. Prepare general journal entries for the above transactions of Valdez Services Print Journal entry worksheet 4 Brina Valdez invested $20,000 cash in the company in exchange for common stock

Explanation / Answer

Ans. Date Accounts and Titles Dr.($) Cr.($) (a) Cash      20,000     To Capital      20,000 (Being cash invested in the company in exchange for common stock) (b) Cash            900     To Service Revenue            900 (Being cash received from a client for services provided) (c) Cash      10,000     To Deferred Revenue      10,000 (Being cash invested in advance from a client for services renderred in next year) (d) Cash         3,500     To Accounts receivable         3,500 (Being partial payment received from a client from accounts receivable) (e) Cash         5,000     To Notes Payable         5,000 (Being borrowed a sum of amount from a bank as in notes payable)

Related Questions

Navigate

• Browse (All)
• Browse 6
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.