Question

On June 1, 2014, England Inc. reported a cash balance of $21,000. During June, England made deposits of $8,000 and made disbursements totaling $24,000. What is the cash balance at the end of June?

a. $5,000 credit balance
b. $29,000 debit balance
c. $5,000 debit balance
d. $3,000 credit balance

Answer 1

The cash balance for England Inc. at the end of June is a $5,000 debit balance, obtained by adding the deposits to the initial cash balance and then subtracting the disbursements.

Step-by-step explanation:

The question asks for the calculation of the cash balance at the end of June for England Inc. after considering its deposits and disbursements over the month. Starting with a cash balance of $21,000 on June 1, 2014, the company made deposits totaling $8,000 and disbursements of $24,000.

To calculate the ending balance, follow these steps:

1. Start with the initial cash balance: $21,000.
2. Add deposits made during June: $8,000.
3. Subtract the disbursements for June: $24,000.
4. The ending balance is then: $21,000 + $8,000 - $24,000 = $5,000.

Therefore, the cash balance at the end of June is a $5,000 debit balance, which is option (c).