The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $ 8 comma 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 comma 500 cash and executing a note payable for $ 8 comma 000. Mar. 4 Purchased office supplies for $ 700 cash. Mar. 5 Billed a client for $ 10 comma 000 of design services completed. Mar. 6 Received $ 7 comma 900 on account for the services previously recorded. What is the balance in Cash on March 6?

Question

Business

Guest

21 April, 21:51

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received $ 8 comma 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 comma 500 cash and executing a note payable for $ 8 comma 000. Mar. 4 Purchased office supplies for $ 700 cash. Mar. 5 Billed a client for $ 10 comma 000 of design services completed. Mar. 6 Received $ 7 comma 900 on account for the services previously recorded. What is the balance in Cash on March 6?

+3

Answers (2)

Know the Answer?

Samir Shah · Answer 1

the balance in Cash on March 6 is $19,300

Explanation:

Consider only cash transactions and account for the balance as follows:

Calculation of Cash Balance - March:

Mar. 1. Receipts from issued common stock $8,000

Mar. 2 Rental Payment ($ 700)

Mar. 3 Purchase of Equipment ($3,500)

Mar. 3 Note Payable $8,300

Mar. 4 Office Supplies Purchase ($700)

Mar. 6 Receipts from Debtors $7,900

Cash Balance $19,300

Carrot · Answer 2

March 6 cash balance is $11,000

Explanation:

Cash receipt from share issue $8,000

payment of monthly rent ($700)

Purchase of equipment ($3,500)

purchase of office supplies ($700)

Receipt of cash $7,900

Cash balance $11,000

The cash balance as at March 6 is $11,000

Note that the issue of $8,000 in part payment for equipment purchase has no cash implication yet, as well as the $10,000 invoicing of customers, hence they were excluded from cash flow computation above