Red Horse and Associates, a firm of real estate agents, had the following transactions represented during September.
Question:
Red Horse and Associates, a firm of real estate agents, had the following transactions represented during September.
1. Arranged the sale of an apartment building owned by a client. The commission for making the sale was $5,000, but this amount would not be received until 20 October.
2. Collected $2,000 cash from trade receivable. The receivable originated in July from services rendered to a client.
3. Borrowed $60,000 from HSBC Bank, to be repaid in three months.
4. Collected $1,500 from a doctor to whom Red Horse and Associates rented part of its building. This amount represented rent for the months of September, October, and November.
5. The owners of Red Horse and Associates invested an additional $10,000 cash in the business.
Which of these transactions represented revenue earned to the firm during the month of September?
Step by Step Answer:
