Question

On December 31, the company's Cash account had a balance of _____. $40,000 $54,000 $110,000 $124,000

Answer 1

Answer:

The company's Cash account had a balance of $54,000 on December 31.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the questions as follows:

Company's cash account had balance of 14000 on January 1

Receipts from customers- 50,000

payments for dividends- 10,000

receipts for dividends- 5,000

payments for merchandise- 25,000

receipts from issuance of stock- 20,000

On December 31, the company's cash balance is?

A 40,000

B 54,000

C 110,000

D 124,000

The explanation of the answer to the question is now given as follows:

the company's Cash account balance On December 31 can be obtained by simply adding the total cash receipts to and deducting the total cash payments from the Company's cash account balance of 14000 on January 1. This can be expressed as follows:

Cash balance on December 31 = Cash account balance on January 1 + Total cash receipts - Total cash payments .............. (1)

Where we have:

a. Cash account balance on January 1 = $14,000

b. Calculation Total cash receipts

Details                                                     $  

Receipts from customers                  50,000

receipts for dividends-                         5,000

receipts from issuance of stock       20,000  

Total cash receipts                           75,000    

c. Calculation Total cash payments

Details                                                      $  

Payments for dividends                     10,000

payments for merchandise               25,000  

Total cash payments                       35,000  

Substituting the values into equation (1), we have:

Cash balance on December 31 = $14,000 + $75,000 - $35,000 = $54,000

Therefore, the company's Cash account had a balance of $54,000 on December 31.