Question

Because Kendall's business spent more money than it collected, the business's balance sheet showed a balance of -$1,280$ at the end of the month. The next day, Kendall's business spent $560 on new tools. Part A Kendall determines that the new balance is -$720 because 1,280 + 560 = -720 . Did Kendall correctly determine the new balance? Explain why or why not. If not, calculate the new balance. Respond in the space provided.

Answer 1

She is not correct. The correct answer should be -$1840

Explanation:

Explanation: Kendal is ultimately wrong, because in his step in adding the $560 spent on new tools, she had added a positive number, which meant they deposited money to go out of debt. Instead he was supposed to subtract the $560, or even add -$560 to the businesses balance. If calculated correctly, by subtracting $560 to the current balance, it would get us to -$1840.

Answer 2

Answer: No. Kendall did not correctly determine the new balance. The new balance is -$1840.

Explanation:

From the question, we are informed that Kendall's business spent more money than it collected, and therefore the business's balance sheet showed a balance of -$1,280 at the end of the month. We are informed that the next day, Kendall's business spent $560 on new tools.

Therefore, since Kendall made a purchase, this is an expense and we have to subtract it from the previous balance. This will be:

= -$1280 - $560

= - $1840

The new balance is -$1840