Following are transactions of Gotebo Tanners, Inc., a new company, during the mo
ID: 2437375 • Letter: F
Question
Following are transactions of Gotebo Tanners, Inc., a new company, during the month of January 2012:
1. Issued 10,000 shares of common stock for $15,000 cash.
2. Purchased land for $12,000, signing a note payable for the full amount.
3. Purchased office equipment for $1,200 cash.
4. Received cash of $14,000 for services provided to customers during the month.
5. Purchased $300 of office supplies on account.
6. Paid employees $10,000 for their first month's salaries.
What was the balance of Gotebo's Cash account following these six transactions?
$29,800.
$19,300.
$17,800.
$22,400.
Explanation / Answer
The answer is " $17,800 "
The balance of Gotebo's cash account after the transactions
= 15,000 - 1,200 + 14,000 - 10,000 = $17,800