Patrick Company had the following transactions:
1)The owner started the company by investing $10,000 of cash.
2)The company paid $2,000 for six months of rent.The rent was paid in advance.
3)The company acquired $3,300 in inventory and put one-third of the purchase on account.The company paid $2,200 cash.
4)The company sold inventory costing $1,400 for $2,900 on account.
After all these transactions,what is the balance in the cash account?
A) $1,600
B) $2,900
C) $5,800
D) $8,000

Question

Quizplus · Accepted Answer

The cash account starts with $10,000 from the owner's investment. The company pays $2,000 for rent and $2,200 for inventory, reducing cash by $4,200. Therefore, the cash balance is $10,000 - $4,200 = $5,800.

Patrick Company Had the Following Transactions