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 )
