The following transactions occurred during July:

1. Received $800 cash for services performed during July.

2. Received $5,000 cash from the issuance of common stock to owners.

3. Received $400 from a customer as payment for services performed during June.

4. Billed $3,500 to customers for services performed on account in July.

5. Borrowed $2,500 from the bank and signed a promissory note.

6. Received $1,000 from a customer for services to be performed during August.

Use the information above to answer the following question. As a result of these transactions, what is the amount of the increase to the Cash account?

$9,700.

$13,200.

$2,200.

$7,200.

Use the information above to answer the following question. Which of the following statements about the recording of these transactions is correct?

Transaction #1 would include a debit to Service Revenue.

Transaction #3 would include a debit to Accounts Receivable.

Transaction #4 would include a debit to Accounts Receivable.

Transaction #6 would include a debit to Unearned Revenue.