1. Prepare general journal entries for the following transactions of Valdez Services.

a. B. Valdez invested $20,000 cash in the company in exchange for common stock.

b. The company provided services to a client and immediately received $900 cash.

c. The company received $10,000 cash from a client in advance for services to be provided next year.

d. The company received $3,500 cash from a client in partial payment of accounts receivable.

2. Transactions a, c, and d did not yield revenue. Match each transaction (a, c, and d) with one of the following reasons for not recording revenue.
______ This transaction changed the form of an asset from a receivable to cash. Total assets were not increased (revenue was recognized when the services were originally provided).
______ This transaction brought in cash, but this is an owner investment.
______ This transaction brought in cash, but it created a liability to provide services to the client in the next year.