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.

The journal entries for the given transactors are shown below :-

a) Debit Cash $ 39,350

Credit Owner's Equity $ 39,350

( The cash, an asset item gets increased by the investment, so any increase in asset is debited and the increase in equity is credited )

b) Debit Accounts Receivable $ 2,300

Credit Service Revenue $ 2,300

( As the company provided service on account , the accounts receivable, an asset item gets increased and any increase in asset is debited and the increase in revenue gets credited )

c) Debit Cash $ 875

Credit Service Revenue $ 875

( The company received cash for the service that was provided...and any increase in asset ( cash ) should be debited and the increase in service revenue should be credited )

d) Debit Cash $ 10,200

Credit Unearned Service Revenue $ 10,200

( Here the company received the cash ( asset gets increased ) so debited for the service that will be provided in future, so its becomes a liability that gets increased. Any increase in liability should be credited )

e) Debit Cash $ 3,500

Credit Accounts Receivable $ 3,500

( Received partial payment , so the cash , an asset item gets increased so debited and the accounts receivable , an asset item gets decreased and so credited the same. )

f) Debit Cash $ 120,000

Credit Notes Payable $ 120,000

( As the company borrowed the cash, an asset item gets increased , so debited and the Notes payable, a liability item gets increased too, so it should be credited )

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