Question

Received $960 cash for services provided to a customer during July. Received $3,200 cash investment from Bob Johnson, the owner of the business Received $810 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $435. Borrowed $6,600 from the bank by signing a promissory note. Received $1,310 cash from a customer for services to be rendered next year. What was the amount of revenue for July?

Answer 1

Answer: $ 1,395

Explanation:

Revenue Items for July

• Cash for services provided during July                   $ 960
• Services provided to customer for credit                $ 435

Other items:

Cash investment of $3200 goes to shareholders/owners \equity

Receipt of $ 810 was settlement of receivable for services rendered in June thus not considered in July revenues

Receipt of cash of $ 1,310 was for services to be provided next year so cannot be considered as July revenues

Borrowing from bank is a financing transaction and not a revenue transaction