On July 7, 2014, Anaya Enterprises performed cash services of $1,400. The entry to record this transaction would include

Question

Quizplus · Accepted Answer

Anaya Enterprises received cash for the services provided, so the entry would include a debit to Cash. Choice A is incorrect because the credit to Service Revenue is missing. Choice B is incorrect because there is no mention of the transaction being on credit, so a credit to Accounts Receivable is not necessary. Choice D is incorrect because there is no mention of Anaya Enterprises owing anyone money, so a credit to Accounts Payable is not necessary.

On July 7, 2014, Anaya Enterprises Performed Cash Services of $1,400