Question

Q 3.35: paulson oil account balances at january 31st include: cash $70,000, accounts receivable $100,000, common stock $120,000 and accounts payable $50,000. during the month of february, the company collected $25,000 of its account receivable and paid $10,000 of its accounts payable. what is paulson’s cash balance on their february 28th trial balance?

Answer 1

Cash Balance at the beginning of February:
70,000
Collected $25,000 of AR:
+25,000
Paid 10,000 owed
-10,000
Cash Balance at the end of February:
70,000 + 25,000 - 10,000 = 85,000