1 accounting Question

User Generated

rearfgb.sreanaqrm

Business Finance

Description

I don't have more budget than what I put if you can't do it for that much then don't bid

  • Newman production services has the following transactions for the year:
  • Beginning cash balance of $45,000
  • Accounts receivable arising from credit sales of $45,000
  • Cash collections on credit sales of $30,000
  • Utility bill received but not yet paid of $5,000
  • Owner investment of $7,500
  • Owner withdrawal of $4,500
  • Cash sales amounting to $12,000
  1. What is the ending cash balance as a result of the you recording all of the above transactions?

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Explanation & Answer

All of these transactions INCREASE your cash balance EXCEPT for the “owner withdrawal” which decreases your cash balance. The calculation to arrive at your answer is this, therefore: 45000+30000+7500-4500+12000 - $90,000. The final cash balance is $90,000.
Attached.



Newma...


Anonymous
Awesome! Perfect study aid.

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