Chaper 3 Quz Wgo MO 3 The following trans-actions occurred during Jdy 1 Received

Question

Chaper 3 Quz Wgo MO 3 The following trans-actions occurred during Jdy 1 Received S1,100 cash for services performed during July 2. Receved $6,050 cash from the issuance of common stock to owners 3. Received $550 from a customer as payment for services performed during June Bitled $3.950 to customers for services performed on account in July 225. Borrowed $2,800 from the bank and signed a promissory note 6 Receved S1,450 from a customer for services to be performed during August As a result of these transactions, what is the amount of the increase to the Cash account? Muhiple Choice $8.400 DOLL

Explanation / Answer

Solution) As the result of the above transactions, the amount of increase to cash account is $11950 ( option d)

Working note:

Cash received from services performed in the month of July $1100

Add: Cash received from the issuance of common stock $6050

Add: Received from the customer for the services performed in June $550

Add: Borrowed from Bank $2800

Add: Received from a customer for the services to be performed for August $1450

Total $11950

No transaction will be recorded in cash account for the transaction 4, as the only bill has been generated to the customer, no cash is yet received

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