Giovani Photography bills Diane Fenning $650 for photography services. The correct journal entry to record this transaction is a debit to cash and a credit to service revenue, which impacts financial statements by reflecting the increase in cash and service revenue accounts. Incorrect entries include debiting accounts receivable and crediting unearned revenue.

1. Giovani Photography bills $650 to Diane Fenning for photography services provided. Which of
the following journal entries is recorded correctly? DR: Senvice Revenue S650: CR. Accounte
Rarcaivabid S650 DR: Accounts Receivable $650 ; CR: Unearned Revenue $650 Incorrect. Read
- 3.5 Use Journal Entries to Record Transactions and Post to TAccounts. Review the impact on
financial statements by (1) examining if a transaction is an accounting transaction which has a
monetary impact, (2) classifying the accounts that may be affected and the accounting equation
category they may fall under, and (3) determining if the accounts will increase or decrease
affecting debit or credit side. DR: Cash $650; CR: Service Revenue $650