On June 30, the Cash account of Lutness Company had a normal balance of $4,300.During July the account was debited for a total of $3,400 and credited for a total of$3,600. What was the balance in the Cash account on August 1?
A)$3,400 debit.
B)$3,400 credit.
C)$4,100 credit.
D)$-0.
E)$4,100 debit.

Question

Quizplus · Accepted Answer

The balance on June 30 was $4,300 debit. In July, the account was debited $3,400 (increasing the balance) and credited $3,600 (decreasing the balance). The net effect is a decrease of $200 ($3,600 - $3,400). Therefore, the balance on August 1 is $4,300 - $200 = $4,100 debit.

On June 30, the Cash Account of Lutness Company Had