The Lion Corp has the following information in regard to its Cash account for the month of August.The account had a normal balance of $25,000 on August 1.During August,it had three debit entries totaling $100,000.The balance in the Cash account on August 31 was $45,000.What was the total of the credit entries to the Cash account during the month of August?
A) $20,000
B) $45,000
C) $80,000
D) $120,000

Question

Quizplus · Accepted Answer

To calculate the credit entries, we need to use the formula:

Ending balance = Beginning balance + Total credits - Total debits

$45,000 = $25,000 + Total credits - $100,000

Solving for Total credits, we get:

Total credits = $45,000 - $25,000 + $100,000

Total credits = $80,000

Therefore, the total of the credit entries to the Cash account during the month of August was $80,000, which is option C.

The Lion Corp Has the Following Information in Regard to Its