The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | }
\hline \text { Revenue } \$ 800 & \text { Cash } \$ 500 \
\hline \text { Expenses } \$ 400 & \text { Accounts Receivable } \$ 350 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Cash account?
A)$800
B)$0
C)$300
D)$500.

Question

The following normal account balances were found on the general ledger before closing entries were prepared:
$$\begin{array} { | l | l | } 
\hline \text { Revenue } \$ 800 & \text { Cash } \$ 500 \
\hline \text { Expenses } \$ 400 & \text { Accounts Receivable } \$ 350 \
\hline \text { Capital } \$ 7,500 & \text { Withdrawals } \$ 1,000 \
\hline
\end{array}$$
After closing entries are posted,what is the balance in the Cash account?
A)$800
B)$0
C)$300
D)$500.

Quizplus · Accepted Answer

Closing entries do not affect the Cash account as they only close temporary accounts like Revenue, Expenses, and Withdrawals. Therefore, the Cash account remains at $500.

The Following Normal Account Balances Were Found on the General