The Following Transactions Occurred During July: 1

question 47

Multiple Choice

The following transactions occurred during July: 1.Received $900 cash for services provided to a customer during July.
2) Received $2,200 cash investment from Bob Johnson,the owner of the business.
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 rendered next year.
What was the amount of revenue for July?

• A)$900.
• B)$1,275.
• C)$2,525.
• D)$3,275.
• E)$11,100.

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Definitions:

Earthquake

A natural phenomenon characterized by the shaking of the surface of the Earth, often caused by the movement of tectonic plates.

Tornado

A violently rotating column of air extending from a thunderstorm to the ground, capable of vast destruction.

Inventory Method

An accounting technique used to determine the cost of goods sold and the end-of-period inventory valuation.

Retrospective Approach

A method of applying certain changes in accounting policies to past periods as if the new policy had always been in place.