Question

During October, Alameda Company had $114,500 of cash receipts and $115,150 of cash disbursements. The October 31 Cash balance was $24,600. Determine how much cash the company had at the close of business on September 30

Answer 1

To determine the cash balance on September 30, subtract the net change in cash from the October 31 Cash balance.

Step-by-step explanation:

To determine how much cash the company had at the close of business on September 30, we need to calculate the net change in cash for the month of October.

The net change in cash is calculated by subtracting cash disbursements from cash receipts. In this case, the net change in cash is $114,500 - $115,150 = -$650.

Since the October 31 Cash balance was $24,600, we can determine the cash balance on September 30 by subtracting the net change in cash from the October 31 Cash balance: $24,600 - (-$650) = $24,600 + $650 = $25,250.

Answer 2

The company had $25,250 in cash at the close of business on September 30.

Step-by-step explanation:

To determine the cash balance at the close of business on September 30, we need to consider the cash receipts and disbursements for the month of October, as well as the cash balance on October 31.

We can calculate the cash balance on September 30 by subtracting the October cash receipts and disbursements from the October 31 cash balance.

Cash balance on September 30 = Cash balance on October 31 - Cash receipts in October + Cash disbursements in October.

Let's substitute the values given:

Cash balance on September 30 = $24,600 - $114,500 + $115,150 = $25,250.

Therefore, the company had $25,250 in cash at the close of business on September 30.