Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Andrea, the stockholder, invested $13,500 cash in the business.
2) Andrea contributed $20,000 of photography equipment to the business.
3) The company paid $2,100 cash for an insurance policy covering the next 24 months.
4) The company received $5,700 cash for services provided during January.
5) The company purchased $6,200 of office equipment on credit.
6) The company provided $2,750 of services to customers on account.
7) The company paid cash of $1,500 for monthly rent.
8) The company paid $3,100 on the office equipment purchased in transaction #5 above.
9) Paid $275 cash for January utilities.
Based on this information, the balance in the cash account at the end of January would be:

Question

Quizplus · Accepted Answer

The cash account balance at the end of January is calculated as follows:
Beginning balance: $0
Add cash investment: $13,500
Add cash received for services provided: $5,700
Less cash paid for insurance policy: $2,100
Less cash paid for office equipment: $6,200
Less cash paid for rent: $1,500
Less cash paid for office equipment (payment in #8): $3,100
Less cash paid for utilities: $275
Ending balance: $12,225

Andrea Apple Opened Apple Photography, Inc