Question

The following entries were made by the accountant of Patel Pastries during its first month of operation: 1. James Patel, the owner, deposited $3,000 in the business's new checking account. 2. Patel Pastries paid the first month's rent of $400 in cash. 3. Patel Pastries purchased equipment by signing a note payable of $11,000. 4. Cash sales for the month were $4,500. 5. Patel Pastries purchased cooking supplies for $1,400 cash. After the accountant posts these entries to the general ledger, what is the balance in the Cash account

Answer 1

$5,700

Step-by-step explanation:

Prepare the Cash Account to determine the Cash Balance as follows :

Cash Account

Debit :

Capital $3,000

Note Payable $11,000

Cash sales $4,500

Totals $18,500

Credit:

Rent $400

Equipment $11,000

Purchases $1,400

Balance (Balancing figure) $5,700

Totals $18,500

Therefore the balance in the Cash account is $5,700