The following transactions occurred during July: 1. Received $800 cash for servi

Question

The following transactions occurred during July:

1. Received $800 cash for services performed during July.

2. Received $5,000 cash from the issuance of common stock to owners.

3. Received $400 from a customer as payment for services performed during June.

4. Billed $3,500 to customers for services performed on account in July.

5. Borrowed $2,500 from the bank and signed a promissory note.

6. Received $1,000 from a customer for services to be performed during August.

Use the information above to answer the following question. As a result of these transactions, what is the amount of the increase to the Cash account?

$9,700.

$13,200.

$2,200.

$7,200.

Use the information above to answer the following question. Which of the following statements about the recording of these transactions is correct?

Transaction #1 would include a debit to Service Revenue.

Transaction #3 would include a debit to Accounts Receivable.

Transaction #4 would include a debit to Accounts Receivable.

Transaction #6 would include a debit to Unearned Revenue.

Explanation / Answer

1) As a result of these transactions, what is the amount of the increase to the Cash account?

so answer is a) $9700

2) In this question only statement transaction 4 is correct because in transaction 4 billed for service performed in debit account receivable and credit service revenue

so answer is c) Transaction #4 would include a debit to Accounts Receivable.

Cash account cash for services performed during July 800 cash from the issuance of common stock to owners 5000 cash received from customer as payment for services performed during June 400 Borrow from bank 2500 Received from customer service to be performed during august 1000 Cash account increase 9700

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