Andrea Apple opened Apple Photography on January 1 of the current year. During J

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: 1. Andrea invested $14,100 cash in the business. 2. Andrea contributed $26,000 of photography equipment to the business. 3. The company paid $2,700 cash for an insurance policy covering the next 24 months. 4. The company received $6,300 cash for services provided during January. 5. The company purchased $6,800 of office equipment on credit. 6. The company provided $3,350 of services to customers on account. 7. The company paid cash of $2,100 for monthly rent. 8. The company paid $3,700 on the office equipment purchased in transaction #5 above. 9. Paid $335 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be:

Explanation / Answer

$ $

1. andrea invested cash in the business 14100

2.received cash for sale provided during january 6300 20400

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Less 1. paid insurance policy covering 2700

   2. cash paid for montly rent 2100

3. cash paid towards office equipment purchased 3700

   4. cash paid for january utilities 335 8835

   ------------- -----------

balance cash at the end of january 11565

Note Non cash Transcation, will not effect the above cash transactions

1. contributed value equal to $26000 worth of equipments

2. purchased office equipment on credit (6800-3700) 3100

3. provided services worth of $ 3350

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