Marks: 1 The following transactions occurred during July: 1. Received $900 cash

Question

Marks: 1 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 Barbara Hanson, 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?

I think it's 11,100 because I can't count future credit of 375...or is it just 900?

Explanation / Answer

Assuming Accrual accouting, revenue for July will be sum of :- 1. Received $900 cash for services provided to a customer during July. 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. 6. Received $1,250 cash from a customer for services to be rendered next year. This totals to 900+750+375+1250 = 3275. When you prepare your Blanace sheet, at that time you can post the Sevices Rev as Asset for Pt 6 above.

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