Question

Following are transactions for Dana Services (a corporation), Which uses monthly accounting periods a. Shareholders invested $38 250 cash in the company b. The company provided $1 350 of services on credit C. The company provided services to a client and immediately received $1,575 cash d. The company received 59,150 cash from a client in payment for services to be provided next year e. The company received S4 500 cash from a client in partial payment of an account receivable 1. The company borrowed $150 000 cash from the bank by signing a promissory note Examine the above transactions and identify those that create revenues. (Click each check box to clear the "?". Then, click the check box next to each answer that applies. Select all that apply.) Transaction a 2) Transaction b 2Transaction 2 Transaction d 2 Transaction e Transaction f Prepare general journal entries to record those transactions that create revenues (Omit the "S" sign in your response.) General Journal Debit (Click to select) (Click to select) Credit (Click to select) (Click to select)

Answer 1

Solution:

1) Transaction-b and Transaction-c create revenue for Dana services

Explanation: The revenue is generated when company proves service on credit; and on cash

2) Journal entry

#	Particulars	Debit	Credit
Transaction-b	Accounts receivable	1,350
	Services revenue		1,350
Transaction-c	Cash	1,575
	Services revenue		1,575