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REY [17]
3 years ago
10

At the beginning of 2018, Rex Co. showed a debit balance in the cash account of $20,500. Total debits to this account during the

year were $45,000, and total credits during the year were $35,000. The net (increase/decrease) in cash for 2018 equals $ .
Business
1 answer:
mars1129 [50]3 years ago
6 0

Answer:

increase ; $30,500

Explanation:

The computation of the net cash increase or decrease is shown below:

=  Debit balance in the cash account + total debit account balance - total credit account balance

= $20,500 + $45,000 - $35,000

= $30,500

Since the cash account has a debit balance and the total of debit balance is greater than the total of credit balance so there would be an increase in net cash      

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Explained and illustrated below is the approach to take on this question.

A trial balance is a list of balances (debit or credit) extracted from ledger accounts.

<u>Adjusted Trial Balance At December 31</u>

                                                    Debits                 Credit

                                                     $000                   $000

Cash                                                  58

Accounts Receivable                         7

Prepaid Insurance (missing)

Equipment                                      120

Accumulated Depreciation                                           8

Accounts Payable                                                          7

Common Stock                                                            116

Retained Earnings                                                        17

Sales Revenue                                                             131

Insurance Expense                           9

Salaries and Wages Expense (missing)

Supplies Expense                           46

Depreciation Expense (missing)

Salaries and Wages Payable           11

Income Tax Expense

Income Tax Payable                                                     13

Totals                                              292                       292

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