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16 December, 00:15

Received $960 cash for services provided to a customer during July. Received $3,200 cash investment from Bob Johnson, the owner of the business Received $810 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $435. Borrowed $6,600 from the bank by signing a promissory note. Received $1,310 cash from a customer for services to be rendered next year. What was the amount of revenue for July?

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  1. 16 December, 01:34
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    Answer: $ 1,395

    Explanation:

    Revenue Items for July

    Cash for services provided during July $ 960 Services provided to customer for credit $ 435

    Other items:

    Cash investment of $3200 goes to shareholders/owners / equity

    Receipt of $ 810 was settlement of receivable for services rendered in June thus not considered in July revenues

    Receipt of cash of $ 1,310 was for services to be provided next year so cannot be considered as July revenues

    Borrowing from bank is a financing transaction and not a revenue transaction
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