The Following Transactions Occurred During July

question 118

Multiple Choice

The following transactions occurred during July:
Received $900 cash for services provided to a customer during July.
Received $2,200 cash investment from Bob Johnson,the owner of the business.
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 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:

Work in Process

Inventory that includes materials that have been partially processed but are not yet finished goods.

Standard Costs

Estimated or predetermined costs of manufacturing, selling, or doing something, which are used for budgetary and costing purposes.

Cost System

A method used by firms to track, record, and analyze costs associated with their operations, typically to improve efficiency or profitability.

Kilos

A metric unit of mass equal to one thousand grams or approximately 2.20462 pounds.