A new company with a balance of zero in their cash account had the following cash transaction in its first month: obtained a bank loan for $344,000, issued stock to shareholders for $112,000, purchased inventory for $54,000, sold merchandise to a customer for $25,000, and paid a dividend of $26,000 to shareholders. What is the balance in the cash account at the end of the month. Note- It may be useful to use a T-account for analysis.

Respuesta :

Answer:

The balance in the cash account at the end of the month will be $401.000

Explanation:

$0

+$ 344,000 bank loan

+$112,000 stock issued to stakeholders

-$54,000 purchase of inventory

+$25,000 sell

-$26,000 payment of dividends

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$401,000 balance at the end of the month

see attached file for T-account

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