Question

On December 1, Poremba Pizza had a cash-in-bank balance of $7,000. During the month of December, Poremba Pizza wrote checks totaling, $4800. Two-thirds of this amount was used to purchase a computer for cash. The remaining amount was used to pay an outstanding invoice for kitchen equipment purchased from Restaurant City.

1. List the account(s) debited and the debit amount.
2. List the account(s) credited and the credit amount.
3.What was the cash-in-bank balance on December 31?

Answer 1

The cash-in-bank account is debited with $4800, the computer account is credited with $3200, and the kitchen equipment account is credited with $1600. The exact cash-in-bank balance on December 31 cannot be determined without additional information.

Step-by-step explanation:

1. List the account(s) debited and the debit amount.

The account debited would be the cash-in-bank account. The amount debited would be $4800, as stated in the question.

2. List the account(s) credited and the credit amount.

The accounts credited would be the computer account and the kitchen equipment account. The computer account would be credited with two-thirds of $4800, which is $3200. The kitchen equipment account would be credited with the remaining amount, which is one-third of $4800, or $1600.

3. What was the cash-in-bank balance on December 31?

The cash-in-bank balance on December 31 would depend on any additional cash inflow or outflow during the month. Without information about additional transactions, we cannot determine the exact cash-in-bank balance on December 31.