Question

During March, Perpetual Envy Inc. provides $23,000 in consulting services for a customer. The customer paid $11,500; the other $11,500 was on account. Which of the following statements about these transactions is correct?

a. Cash increases by $19,500, Consulting Revenue increases by $19,500, and Accounts Receivable increases by $39,000.
Accounts Receivable increases by $19,500, Liabilities decrease by $19,500, and Stockholders' Equity increases by $39,000.
Revenues increase by $19,500, liabilities decrease by $19,500, and stockholders' equity is unchanged.

Answer 1

The correct statements are : Cash increase by $19500, Accounts receivable increase by $19500 and Consulting revenue increase by $39000.

Step-by-step explanation:

Accounts Debit Crefit

Cash $19500

Accounts receivable $19500

Consulting Revenue $39000

Thus, after reviweing the hournal emtry passsed it is clear that the correct statements out of the given statements are as follows :

Cash increase by $19500, Accounts receivable increase by $19500 and Consulting revenue increase by $39000.