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Consider the following transactions.
1. Receive cash from customers, $16,400.
2. Pay cash for employee salaries, $10,400.
3. Pay cash for rent, $4,400.
4. Receive cash from sale of equipment, $9,400.
5. Pay cash for utilities, $2,400.
6. Receive cash from a bank loan, $5,400.
7. Pay cash for advertising, $8,400.
8. Purchase supplies on account, $4,400.
Required: Post transactions to the Cash T-account and calculate the ending balance.
Cash
Beg. bal. 20,400
End. bal.

Sagot :

Answer:

Ending cash balance is $26,000

Explanation:

Note: See the attached excel file for the Cash T-account.

Cash T-account is an account in which all the cash receipts are debited and cash payments and credited. It should be noted only cash transactions are recorded in the Cash T-account.

The ending balance of a Cash T-account, assuming there is a debit beginning balance, can be calculated as follows:

Ending balance = Beginning balance + Sum of cash receipts - Sum of cash payments

From the attached excel file, we therefore have:

Ending cash balance = $20,400 + $31,200 - $25,600 = $26,000

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