Question

On April 1, the cash account balance was $19,850. During April, cash receipts totaled $301,720 and the April 30 balance was $14,290. Determine the cash payments made during April.

Answer 1

ANSWER

$307,280

Step-by-step explanation

Cash is an asset to a business and the most liquid of all of its assets.

Using the double-entry accounting system, cash transactions are recorded as follows:

Increase in cash Debit

Decrease in cash Credit

The cash balance at the end of the period is determined as follows:

$

Cash balance at the beginning xxx

Add cash receipt during the period xxx

Less cash payment made (xxx)

Cash balance at the end xxx

We can apply this to the question:

14,290 = 19850 + 301, 720 - y (let y denote cash payment )

y = 19,850 + 301,720 - 14,290

y = 307,280

cash payment made $307,280