The following transactions for the month of March have been journalised and posted to the proper accounts.

Mar 1 Martinez invested $9000 cash in his new design services business.
Mar 2 Paid the first month's rent of $900.
Mar 3 Purchased equipment by paying $4000 cash and executing a loan payable for $9000.
Mar 4 Purchased office supplies for $750 cash.
Mar 5 Billed a client for $8000 of design services completed.
Mar 6 Received $7900 on account for the services previously recorded.
What is the balance in Cash?

Question

The following transactions for the month of March have been journalised and posted to the proper accounts.

Mar 1 Martinez invested $9000 cash in his new design services business.
Mar 2 Paid the first month's rent of $900.
Mar 3 Purchased equipment by paying $4000 cash and executing a loan payable for $9000.
Mar 4 Purchased office supplies for $750 cash.
Mar 5 Billed a client for $8000 of design services completed.
Mar 6 Received $7900 on account for the services previously recorded.
What is the balance in Cash?

Quizplus · Accepted Answer

The cash balance is calculated as follows: Starting with $9000 (investment), subtract $900 (rent), subtract $4000 (equipment), subtract $750 (supplies), and add $7900 (received from client), resulting in a balance of $11,250.

The Following Transactions for the Month of March Have Been