Question

The following transactions occurred during July: Received $900 cash for services performed during July. Received $5,350 cash from the issuance of common stock to owners. What is the amount of revenue that will be reported on the income statement for the month ended July 31?

Answer 1

Answer:

$900

Explanation:

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.  

So, only $900 would be reported on the income statement as the other transaction reflect the financing activity