Determine the amount to post to the Cash T-account. Event Debit/Credit Purchase equipment by signing a note with the bank for $20,000. Provide services to customers for $26,000 cash. Pay utilities of $2,000 for the current month. Pay back bank note of $20,000. Purchase supplies for $700 cash.

a. Assuming the beginning balance in the Cash T-account is $0, what is the ending balance in the Cash T-account after the five transactions above?

b. Instead of a beginning balance of $0, what if the beginning balance in the Cash T-account was $3,000. Now, what is the ending balance in the Cash T-account after the five transactions above?

Question

Business

Cristina Parker

3 April, 16:59

Determine the amount to post to the Cash T-account. Event Debit/Credit Purchase equipment by signing a note with the bank for $20,000. Provide services to customers for $26,000 cash. Pay utilities of $2,000 for the current month. Pay back bank note of $20,000. Purchase supplies for $700 cash.

a. Assuming the beginning balance in the Cash T-account is $0, what is the ending balance in the Cash T-account after the five transactions above?

b. Instead of a beginning balance of $0, what if the beginning balance in the Cash T-account was $3,000. Now, what is the ending balance in the Cash T-account after the five transactions above?

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Answers (1)

Know the Answer?

Darwin Weber · Answer 1

(A) Ending Balance is $ 3,300

(B) Ending Balance is $6,300

Explanation:

(A) Ending Balance:

$

Opening Balance 0

Inflow from Bank Loan 20,000

Purchase equipment (20,000)

Cash Receipt from customer 26,000

Utilities payment (2,000)

Bank loan repayment (20,000)

Supplies purchased (700)

Cash closing Balance 3,300

(B)

Opening Balance 3,000

Inflow from Bank Loan 20,000

Purchase equipment (20,000)

Cash Receipt from customer 26,000

Utilities payment (2,000)

Bank loan repayment (20,000)

Supplies purchased (700)

Cash closing Balance 6,300