Question

The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. 1 The business received​ $7,000 cash and issued common stock to stockholders. Mar. 2 Paid the first​ month's rent of​ $700. Mar. 3 Purchased equipment by paying​ $3,000 cash and executing a note payable for​ $8,000. Mar. 4 Purchased office supplies for​ $700 cash. Mar. 5 Billed a client for​ $10,000 of design services completed. Mar. 6 Received​ $7,800 on account for the services previously recorded What is the balance in Cash on March​ 6?

Answer 1

Answer:

On 6 March there is a debit balance of $10,400 cash in the cash book

Explanation:

Prepare a Cash Book Account as Follows:

Debits:

Mar.1 Shareholders Equity                             7,000

Mar. 6 Trade Receivable                                7,800

Credits:

Mar .2 Rent                                                      (  700)

Mar. 3 Equipment                                          ( 3,000)

Mar. 4 Office Supplies                                     ( 700)

Balance in Cash on March​ 6                          10400