Andrea Apple opened Apple Photography on January 1 of the current year. During J
ID: 2607560 • Letter: A
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:
Andrea invested $13,500 cash in the business.
Andrea contributed $20,000 of photography equipment to the business.
The company paid $2,100 cash for an insurance policy covering the next 24 months.
The company received $5,700 cash for services provided during January.
The company purchased $6,200 of office equipment on credit.
The company provided $2,750 of services to customers on account.
The company paid cash of $1,500 for monthly rent.
The company paid $3,100 on the office equipment purchased in transaction #5 above.
Paid $275 cash for January utilities.
Based on this information, the balance in the cash account at the end of January would be:
Explanation / Answer
Calculation of Cash Balance at end of january :-
Particular Amount($) Invested in Business 13500 Add: Cash from Services 5700 Less : Cash Paid for Insurence (2100) Less : Rent Paid (1500) Less : Cash paid for office equipment (3100) Less : Cash Paid for Utilities (275) Cash Balance at End of January 12225