Reference no: EM132484331

During January 2018, the first month of operations, a consulting firm had following transactions:

1. Issued common stock to owners in exchange for $10,000 cash.
2. Purchased $2,500 of equipment, paying $750 cash and signing a promissory note for $1,750.
3. Received $4,500 in cash for consulting services performed in January.
4. Purchased $750 of supplies on account; all of the supplies were used in January.
5. Provided consulting services on account in the amount of $8,000.
6. Paid $375 on account.
7. Paid $1,500 to employees for work performed during January.
8. Received a bill for utilities for January of $1,700; the bill remains unpaid.

Question 1: What is the amount of total revenue to be reported on the income statement for the month of January?

Multiple Choice

Option 1: $22,500

Option 2: $12,500

Option 3: $4,500

Option 4: $14,500