The following transactions occurred during July: Received $1,050 cash for servic

Question

The following transactions occurred during July: Received $1,050 cash for services performed during July. Received $5,900 cash from the issuance of common stock to owners. Received $525 from a customer as payment for services performed during June. Billed $3,950 to customers for services performed on account in July. Borrowed $2,700 from the bank and signed a promissory note. Received $1,375 from a customer for services to be performed during August. What is the amount of revenue that will be reported on the income statement for the month ended July 31?

Explanation / Answer

Caluculation reported income for the month end of july:

1.cash received from for serivces rendered to customers in the month of july, so this amount $1,050 can consider as the income of JUly month.

2.cash received for issue of common stock can no be considered as reporting income.

3.cash received from custmers for serivces rendered in the month of june, so this amount also not considered for the revenue of july month.

4.Billed $3,950 to the serived rendered to customers in the month of july , so this can be considered for reporting income,

5.borrowed amount from notes payable, this amount is also not considered for reporting income of july.

6.amount reeived from customers for serivces rendered in the month of august , it is not cosidered for reporting income of july month.

so now reporting income=$1,050+$3,950=$5,000

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