Question

On April 1, Margaret Moore established Moore's Travel Agency. The following transactions were completed during the month.

1. Invested 14,000 cash to start the agency.
2. Paid 700 cash for April office rent.
3. Purchased equipment for 3,600 cash.
4. Incurred 900 of advertising costs in the Chicago Tribune, on account.
5. Paid 900 cash for office supplies.
6. Performed services worth 10,000: 2,500 cash is received from customers, and the balance of 7,500 is billed to customers on account.
7. Withdrew 500 cash for personal use.
8. Paid Chicago Tribune 700 of the amount due in transaction (4).
9. Paid employees' salaries 2,200.
10. Received 4,500 in cash from customers who have previously been billed in transaction (6).

What was the total amount of cash received by Moore's Travel Agency during the month of April?

Answer 1

Moore's Travel Agency received a total of $21,000 in cash during the month of April. This includes an investment of $14,000, cash from services amounting to $2,500, and $4,500 from payments of previously billed customers.

Step-by-step explanation:

To determine the total amount of cash received by Moore's Travel Agency during the month of April, we need to sum all the cash inflows from the provided transactions. Transactions that include cash receipts are:

• Transaction 1: Margaret Moore invested $14,000 cash to start the agency.
• Transaction 6: Performed services with $2,500 cash received from customers.
• Transaction 10: Received $4,500 in cash from customers who were previously billed.

Adding these amounts of cash received, we get a total of:

$14,000 (from investment) + $2,500 (cash from services) + $4,500 (cash from billed customers) = $21,000

Therefore, the total amount of cash received by Moore's Travel Agency during the month of April is $21,000.