Question

In Year 1. Lee Inc. billed its customers $62,000 for services performed. The company collected $51,000 of the amount billed. Lee

ncurred $39,000 of other operating expenses on account. Lee paid $31,000 of the accounts payable. Lee acquired $40,000 cash
from the issue of common stock. The company invested $21,000 cash in the purchase of land.
What amount of revenue will Lee report in the year 1 income statement?

Answer 1

$62,000

Explanation:

Given the following :

Amount billed for services performed = $62,000

Bulled amount collected = $51,000

Operating expenses incurred = $39,000

Account payable = $31000

Cash from issue of common stock = $40,000

Cash invested on land purchase = $21,000

Amount of revenue to be reported in income statement : will be the total amount earned from the goods sales and services rendered. Hence, since the billing Given by Lee for the services rendered in Year 1 is reported as $62,000, Hence the amount of revenue to be reported in the income statement will be $62,000