I wanted to double check my answer on a homework question for accounting:
The following transactions occurred during July:
1. Received $900 cash for servicies 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 form 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 froma 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
I came up with B $1,275 because we are realizing the income from numbers 1 and 4. Is this correct?
Thanks
