Question

The following transactions occurred during July: Received $1,050 cash for services provided to a customer during July. Received $5,000 cash investment from Bob Johnson, the owner of the business Received $900 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $525. Borrowed $7,500 from the bank by signing a promissory note. Received $1,400 cash from a customer for services to be rendered next year. What was the amount of revenue for July

Answer 1

Answer:

$1,575

Explanation:

We will clasify the item "revenue" or "not":

1. Received $1,050 cash for services provided to a customer during July -> yes, this is revenue
2. Received $5,000 cash investment from Bob Johnson :  not revenue
3. the owner of the business Received $900 from a customer in partial payment of his account receivable which arose from sales in June: not revenue for July, but June which was booked in June revenue already
4. Provided services to a customer on credit, $525: yes, this is July revenue though it's still on account receivable
5. Borrowed $7,500 from the bank by signing a promissory note: not revenue
6. Received $1,400 cash from a customer for services to be rendered next year: not July revenue, it's customer advace and might be next year revenue once services are completed

So the amount of revenue for July = Received $1,050 cash for services provided to a customer during July + Provided services to a customer on credit, $525

= $1,050 +$525

=  $1,575