The following transactions occurred during July: received $900 cash for services provided to a customer during July. Issued common stock for $2,200 cash. 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 performed next year. What was the amount of revenue for July?
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To determine the amount of revenue for July, let's analyze the transactions:
Received $900 cash for services provided to a customer during July.
Provided services to a customer on credit, $375.
Received $1,250 cash from a customer for services to be performed next year.
Revenue is recognized when goods are delivered or services are performed, irrespective of when the cash is received.
From the transactions:
$900 cash was received for services provided during July.
$375 of services were provided on credit during July.
Therefore, the total revenue for July is:
Revenue = Cash received for services + Services provided on credit
Revenue = $900 + $375 = $1,275
The amount of revenue for July is $1,275.