Question

The following transactions occurred during July: 1. Received $940 cash for services provided to a customer during July. 2. Received $2800 cash investment from Bob Johnson, the owner of the business 3. Received $790 from a customer in partial payment of his account receivable which arose from sales in June. 4. Provided services to a customer on credit, $415. 5. Borrowed $6400 from the bank by signing a promissory note. 6. Received $1290 cash from a customer for services to be rendered next year. What was the amount of revenue for July?

Answer 1

Answer: $1,355

Explanation:

Given that,

1. Cash received  for services provided = $940 during July

2. Cash received from investment = $2800

3. Account receivable from sales in June = $790

4. Services provided on credit = $415

5. Borrowed from a bank = $6400 (signing a promissory note)

6. Cash received from customer for future services = $1290

Amount of revenue for July = Cash received for services provided + Services provided on credit

                                              = $940 +  $415

                                              = $1,355