2 Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. Assume Valdez Services began the year with the following balances: Cash, $29,000; Accounts receivable, $10,800; and B. Valdez, Capital, $39,800. January 1 Brina Valdez invested $20,800 cash in the company. 02-16:46 January 2 The company provided services to a client and immediately received $3,300 cash. January 3 The company received $10,800 cash from a client in payment for services to be provided next year. January 4 The company received $5,100 cash from a client in partial payment of an accounts receivable. January 5 The company borrowed $9,000 cash from the bank by signing a note payable. Requirement General Journal General Ledger Trial Balance Income Statement Statement Balance Sheet Owners Equity Financial Statement Impact An income statement reports the changes in equity attributable to the operation of the business during a specific time period. Revenues increase equity, and expenses decrease equity. Revenues Services revenue Expenses Total expenses Net income Valdez Company Income Statement For Month Ended January 31 $ 0 Net income or loss is transferred from the income statement to the: < Trial Balance 0 $ 0 General Journal General Ledger Trial Balance Statement of Owner's Equity