Question

During February 2018 its first month of operations, the stockholders of Bonita Enterprises invested cash of $49500. Bonita had cash revenues of $10100 and paid expenses of $14700. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Answer 1

The balance in Cash at February 28 = $44900

Explanation:

Given:  

Cash invested by stockholders of Bonita Enterprises = $49500

Cash revenues of Bonita = $10100

Expenses paid by Bonita = $14700

Calculation of balance in cash as follows:

The balance in Cash at February 28 = Cash Invested + Cash Revenues - Paid Expense=$ 49,500 + $ 10100 - $ 14,700= $ 44900

Hence the correct answer is $44900