Answer:
$10,000 increase
Explanation:
If we make a ledger account, it will be easier to understand whether it increases or decreases. The following is the ledger of cash account -
Cash Account
Debit Credit
Date/Number Amount ($) Amount ($) Date/Number
Jan. 2018 (Beginning) $20,500
<u>1. Overall 45,000 35,000 1. Overall</u>
Balance, December $30,500 (See note for calculation)
2018
Note:
1. Beginning cash + Debit balances - Credit balances = Ending balance
or, $20,500 + 45,000 - 35,000 = $30,500
2. Therefore, increase in cash = Ending cash balance - Beginning cash balance = $30,500 - 20,500 = $10,000.
