Gamble Company had the following transactions: 1.The owner started the company by investing $8,000 of cash.
2.The company paid $2,000 for six months of rent.The rent was paid in advance.
3.The company acquired $3,300 in inventory and put one-third of the purchase on account.The company paid $2,200 cash.
4.The company sold inventory costing $1,400 for $2,900 on account.
After all these transactions,what is the balance in the cash account?
A)$1,600
B)$3,800
C)$4,800
D)$6,700

Question

Quizplus · Accepted Answer

The cash account is affected by only two transactions:
1. The owner invested $8,000 of cash. This increased the cash balance to $8,000.
2. The company paid $2,200 cash for inventory. This decreased the cash balance to $5,800.

Therefore, the balance in the cash account is $5,800. Option B is the correct answer.

Gamble Company Had the Following Transactions: 1