Question

Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.

Answer 1

Answer:

The correct answer is:

$54,400 (B)

Explanation:

In order to calculate the ending balance, we have to group the entries into income and expenditure, and compute the difference between them. However please note that the question asked us to calculate for the cash balance, hence the entry titled 'budget depreciation expense' will not be used for the calculation, because it is not a cash transaction.

particulars                              income($)                           expenditure($)

Beginning cash balance           94,300                                      -

cash receipt from sales           414,500                                      -

purchase disbursement                -                                        269,500

salaries disbursement                                                               95,300

other cash expenses                                                                 57,300

cash loan repayment                                                                 32,300

Total                                         508,800                                 454,400

Balance = Total income - Total expenditure

508,800 - 454,400 = $54,400