Diamond Company had the following transactions during June: Performed services for $3,000 on account; received cash on account, $8,000; paid $900 for repair expense; paid $1,600 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June transactions?

Effect = $5500

Explanation:

Given dа ta:

Service amount = $3000

Received cash amount $8000

Expenses for repair = $900

Paid to supplier = $1600

Received cash amount is $8000

Paid cash = $1600 + $900

Paid cash = $2500

combined effect is calculated as

combined effect = received cash - paid cash

Effect = $8000 - $2500

Effect = $5500