Question

The following normal account balances were found on the general ledger before closing entries were prepared: Revenue $800 Cash $500 Expenses $400 Accounts Receivable $350 Capital $7,500 Withdrawals $1,000 After closing entries are posted, what is the balance in the Cash account? Accounting

Answer 1

$ 7250

Explanation:

Data provided:

Revenue = $800

Cash = $500

Expenses = $400

Accounts Receivable = $350

Capital = $7,500

Withdrawals = $1,000

Balance in the cash account

=(Revenue+Cash + Accounts Receivable + Capital )-(Expenses + Withdrawals)

on substituting the values, we get

Balance in cash account = ( $ 800 + $ 350 + $ 7,500 ) - ( $ 400 + $ 1,000)

or

Balance in cash account = $ 8,650 - $ 1,400 = $ 7250