Exercise 3.7 p. 121 1. The following transactions were carried out during the month of May by M. Palmer and Company, a firm of design architects. For each of the five transactions, you are to state whether the transaction represented revenue to the firm during the month of May. Give reasons for your decision in each case. a. M. Palmer and Company received $25,000 cash by issuing additional shares of capital stock. b. Collected cash of $2,400 from an account receivable. The receivable originated in April from services rendered to a client. c. Borrowed $12,800 from Century Bank to be repaid in three months. d. Earned $83 interest on a company bank account during the month of May. No withdrawals were made from this account in May. e. Completed plans for guesthouse, pool, and spa for a client. The $5,700 fee for this project was billed to the client in May, but will not be collected until June 25.