The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $700. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $8,000. Mar. 4 Purchased office supplies for $700 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $7,800 on account for the services previously recorded What is the balance in Cash on March 6?

Question

Business

Phoebe Acevedo

15 June, 02:45

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first month's rent of $700. Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $8,000. Mar. 4 Purchased office supplies for $700 cash. Mar. 5 Billed a client for $10,000 of design services completed. Mar. 6 Received $7,800 on account for the services previously recorded What is the balance in Cash on March 6?

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Answers (1)

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Emilio Holloway · Answer 1

On 6 March there is a debit balance of $10,400 cash in the cash book

Explanation:

Prepare a Cash Book Account as Follows:

Debits:

Mar. 1 Shareholders Equity 7,000

Mar. 6 Trade Receivable 7,800

Credits:

Mar. 2 Rent (700)

Mar. 3 Equipment (3,000)

Mar. 4 Office Supplies (700)

Balance in Cash on March 6 10400