In the first month of operations, the total of the debit entries to the Cash account amounted to $1,400 and the total of the credit entries to the Cash account amounted to $800. The Cash account has aA) $800 credit balance. B) $1,400 debit balance. C) $600 debit balance. D) $600 credit balance.

Question

Business

Nyla Berger

31 May, 18:28

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,400 and the total of the credit entries to the Cash account amounted to $800. The Cash account has aA) $800 credit balance. B) $1,400 debit balance. C) $600 debit balance. D) $600 credit balance.

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Answers (1)

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Garrett Elliott · Answer 1

Answer: Option (c) is correct.

Explanation:

Cash account:

Debit amount of cash account = $1,400

Credit amount of cash account = $800

Therefore, overall cash balance is calculated as the difference between the debit amount and the credit amount.

Overall cash balance = Debit amount - Credit amount

= $1,400 - $800

= $600 (Debit Balance)

Therefore, the cash account has a debit balance of $600.