Question

Pecord the following trankactoon On Jan. 5 , the company received $15.500 cash as tees for senices provided to a cusiomer. For the toolbar, Dress ALT+F10 CPG or ALT+FN+F10 IMaCL

Answer 1

To record the receipt of $15,500 cash for services, debit Cash and credit Service Revenue for the same amount, affecting both the company's assets and revenue.

Step-by-step explanation:

When a company receives $15,500 cash as fees for services provided to a customer, this transaction impacts the company's financial statements and must be recorded appropriately. To record this transaction, a debit to the Cash account and a credit to the Service Revenue account is required.

The journal entry on January 5 would look like this:

• Debit Cash $15,500
• Credit Service Revenue $15,500

This transaction reflects an increase in the company's assets as cash is received and an increase in equity as the company earns revenue from providing services.