Question

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: Andrea invested $15,100 cash in the business in exchange for common stock. Andrea contributed $36,000 of photography equipment to the business. The company paid $3,700 cash for an insurance policy covering the next 24 months. The company received $7,300 cash for services provided during January. The company purchased $7,800 of office equipment on credit. The company provided $4,350 of services to customers on account. The company paid cash of $3,100 for monthly rent. The company paid $4,700 on the office equipment purchased in transaction #5 above. Paid $435 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be:

Answer 1

$ 10465

Step-by-step explanation:

Cash Book can be used to get cash balance of a firm for at the end of an accounting period, with cash receipts debited 'to' & cash payments credited 'by' in Cash Book

Above Transactions Cash Book :

Debit (+) Credit (-)

To Capital 15100 By insurance 3700

To sales 7300 By rent 3100

By office equipment supplier 4700

By extra utilities 435

By balance carried down 10465

• Andrea's contribution in form of 'photography equipments' ; Company purchasing office equipment on 'credit' ; Company providing services to customers on a/c i.e 'credit' : dont effect the cash in hand of firm & hence are not entered in cash book.
• Creditor - Office equipment, supplier later paid partially effects the cash outflow & hence is recorded.

The balance left from adding all cash inflows, subtracting all cash outflows = $ 10465