Question

Answer 1

1.

Record the two transactions on the books of Orm Consulting:

Prepare the journal entry for service performed on account for $4,600:

Date	Account title and explanation	Debit	Credit
1	Accounts receivable	$    4,600
	Service revenue		$    4,600

Prepare the journal entry for cash received from the client for $2,200:

Date	Account title and explanation	Debit	Credit
2	Cash	$    2,200
	Accounts receivable		$    2,200

2.

Prepare the T-accounts:

Accounts receivable:

Date	Account title	Debit	Credit	Balance
1	Service revenue	$ 4,600		$     4,600
2	Cash		$ 2,200	$     2,400
	Closing balance			$     2,400

Service revenue:

Date	Account title	Debit	Credit	Balance
1	Accounts receivable		$ 4,600	$     4,600
	Closing balance			$     4,600

Cash:

Date	Account title	Debit	Credit	Balance
2	Accounts receivable	$ 2,200		$     2,200
	Closing balance			$     2,200