Question

On May 31, the Cash account of Tesla had a normal balance of $5,300. During May, the account was debited for a total of $12,500 and credited for a total of $11,800. What was the balance in the Cash account at the beginning of May?

Answer 1

Answer:

The balance in the Cash account at the beginning of May was $4,600

Explanation:

The balance in the Cash account at the ending of May =  The balance in the Cash account at the beginning of May + Cash increased in May - Cash decreased in May.

The balance in the Cash account at the beginning of May = The balance in the Cash account at the ending of May + Cash decreased in May - Cash increased in May

Cash increased in May = the Cash account was debited = $12,500

Cash decreased in May = the Cash account was credited = $11,800

The balance in the Cash account at the beginning of May = $5,300 + $11,800 - $12,500 = $4,600