Question

Jan 1, Abi started a photography business. During January, the following transactions occurred and were recorded in the company's books:

Abi invested $13,700 cash in the business in exchange for common stock.

Abi contributed $22,000 of photography equipment to the business.

The company paid $2,300 cash for an insurance policy covering the next 24 months.

The company received $5,900 cash for services provided during January.

The company purchased $6,400 of office equipment on credit.

The company provided $2,950 of services to customers on account.

The company paid cash of $1,700 for monthly rent.

The company paid $3,300 on the office equipment purchased in transaction #5 above.

Paid $295 cash for January utilities.

Based on this information, the balance in the cash account at the end of January would be:

$44,050

$14,955

$19,300

$12,005

$15,650.

Answer 1

Ans:Option 4 $12,005 is Correct Answer

Explanation:

13700-2300+5900-1700-3300-295=12,005

Transaction or Event	Explanation	Add or Less
Abi invested $13,700 cash in the business in exchange for common stock.	Cash bring into Business ,Cash Inflow	Add
Abi contributed $22,000 of photography equipment to the business.	Cash is not Effected	NA
The company paid $2,300 cash for an insurance policy covering the next 24 months.	Cash Paid	Less
The company received $5,900 cash for services provided during January.	Actual Cash Received	Add
The company purchased $6,400 of office equipment on credit.	Cash is not Effected as Purchased on Credit	NA
The company provided $2,950 of services to customers on account.	Cash is not Effected,Provided on Account	NA
The company paid cash of $1,700 for monthly rent.	Cash Paid	Less
The company paid $3,300 on the office equipment purchased in transaction #5 above.	Cash Paid	Less
Paid $295 cash for January utilities	Cash Paid	Less

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