Meridian Furniture had the transactions for the month that are summarized below.
-Purchased $1,800 in supplies with cash.
-Issued 200 shares of stock for $45 per share.
-Ordered supplies at a cost of $4,000.
-Paid a utility bill for $500.
If the Cash account had a beginning balance of $10,000,what was the balance at the end of the month?
A) $11,300
B) $12,700
C) $16,700
D) $20,300

Question

Quizplus · Accepted Answer

- The purchase of supplies with cash would reduce the Cash account by $1,800 
- Issuing 200 shares of stock for $45 per share would increase the Cash account by $9,000 ($45 per share x 200 shares) 
- Ordering supplies at a cost of $4,000 does not affect the Cash account since no payment was made yet 
- Paying a utility bill for $500 reduces the Cash account by $500 
Thus, the ending balance for the Cash account would be:

Beginning balance ($10,000) + Increase from stock issuance ($9,000) - Decrease from supplies purchased with cash ($1,800) - Decrease from utility bill payment ($500) = $16,700.

Meridian Furniture Had the Transactions for the Month That Are