Question

During october, alameda company had $102,500 of cash receipts and $103,150 of cash disbursements. the october 31 cash balance was $18,600. determine how much cash the company had at the close of business on september 30.

Answer 1

The Alameda co had income of $102,500 in October and disbursements of $103,500 also during October. The difference is 103,500-102500= -$650. So if at Oct. 31 the cash balance was $18,600, at Sept. 30th the cash balance would have to be $18,600+$650=$19,250.