Question

The following transactions occurred during July: Received $940 cash for services provided to a customer during July. Received $2,800 cash investment from Bob Johnson, the owner of the business. Received $790 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $415. Borrowed $6,400 from the bank by signing a promissory note. Received $1,290 cash from a customer for services to be performed next year. What was the amount of revenue for July

Answer 1

July's revenue = $940 + $415 = $1,355

Step-by-step explanation:

Received $940 cash for services provided to a customer during July. ⇒ INCLUDED IN JULY'S REVENUE

Received $2,800 cash investment from Bob Johnson, the owner of the business. ⇒ NOT CONSIDERED REVENUE

Received $790 from a customer in partial payment of his account receivable which arose from sales in June. ⇒ INCLUDED IN JUNE'S REVENUE

Provided services to a customer on credit, $415. ⇒ INCLUDED IN JULY'S REVENUE

Borrowed $6,400 from the bank by signing a promissory note. ⇒ NOT CONSIDERED REVENUE

Received $1,290 cash from a customer for services to be performed next year. ⇒ DEFERRED REVENUE