The following transactions occurred during July: • Received $900 cash for services provided to a customer during July.
• Received $2,200 cash investment from Bob Johnson, the owner of the business.
• Received $750 from a customer in partial payment of his account receivable which
Arose from sales in June.
• Provided services to a customer on credit, $375.
• Borrowed $6,000 from the bank by signing a promissory note.
• Received $1,250 cash from a customer for services to be rendered next year.
What was the amount of revenue for July?
A) $ 900.
B) $ 1,275.
C) $ 2,525.
D) $ 3,275.
E) $ 11,100.

Question

Quizplus · Accepted Answer

Revenue is recognized when services are provided or goods are sold. Only cash received for services provided in July should be counted as revenue, which is $900. The $1,250 received for services to be rendered next year does not count as revenue for July. Therefore, the total revenue for July is $900.

The Following Transactions Occurred During July: • Received $900 Cash