The following transactions occurred during July:
1.Received $900 cash for services provided to a customer during July.
2.Issued common stock for $2,200 cash.
3.Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
4.Provided services to a customer on credit,$375.
5.Borrowed $6,000 from the bank by signing a promissory note.
6.Received $1,250 cash from a customer for services to be performed 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

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

Quizplus · Accepted Answer

Revenue is recognized when services are provided, regardless of whether payment is received or not. Transaction 1 indicates that $900 was received for services provided during July, therefore the revenue for July is $900. No other transactions in July relate to revenue.

The Following Transactions Occurred During July