Inge Industries Received $3,000 from a Customer for Services Rendered

question 156

Multiple Choice

Inge Industries received $3,000 from a customer for services rendered and not previously recorded. Inge's general journal entry to record this transaction will be:

• A) Debit Services Revenue, credit Accounts Receivable.
• B) Debit Cash, credit Accounts Payable.
• C) Debit Cash, credit Accounts Receivable.
• D) Debit Cash, credit Services Revenue.
• E) Debit Accounts Payable, credit Services Revenue.

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Definitions:

Transactions

Acts of buying, selling, or exchanging goods, services, or financial assets in the course of business.

Assets

are resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Liabilities

Financial obligations or debts that a company or individual owes, which are required to be paid in the future.

Beginning Equity

The value of an owner's interest in a company at the start of an accounting period, before any transactions affecting equity occur.