During the month of February,Victor Services had cash receipts of $7,500 and cash disbursements of $8,600.The February 28 cash balance was $1,800.What was the February 1 beginning cash balance?
A)$700.
B)$1,100.
C)$2,900.
D)$0.
E)$4,300.

Question

Quizplus · Accepted Answer

Beginning cash balance + cash receipts - cash disbursements = ending cash balance
Let's use the given information to solve for the beginning cash balance:
Beginning cash balance + $7,500 - $8,600 = $1,800
Beginning cash balance = $1,800 + $1,100 (addition of cash disbursements and subtraction of cash receipts)
Beginning cash balance = $2,900
Therefore, the correct answer is C.

During the Month of February,Victor Services Had Cash Receipts of $7,500