The following transactions for the month of March have been journalized and posted to the proper accounts. Mar. I Martinez invested $\$ 9,000$ cash in his new design services business.
Mar. 2 Paid the first month 5 rent of \$800.
Mar. 3 Purchased equipment by paying $3,000 cash and executing a note payable for $5,000.
Mar. 4 Purchased office supplies for $\$ 750$ cash.
Mar. 5 Eilled a client for $\$ 10,000$ of design services completed.
Mar. 6 Received $8,000 on account for the services previously recorded.
-According to the above transactions.What is the balance in Cash?

Question

Quizplus · Accepted Answer

To calculate the balance in cash, we need to add up all cash transactions and subtract any cash paid out. Thus, the calculation is as follows:

Cash balance = 
Starting cash balance (not given) + 
Cash invested by Martinez ($9,000) + 
Cash paid for office supplies ($750) - 
Received on account ($8,000) - 
Rent paid ($800) - 
Cash paid for equipment ($3,000)

Cash balance = $9,000 + $750 - $8,000 - $800 - $3,000 
Cash balance = $450

Therefore, the correct answer is B, $12,450.

The Following Transactions for the Month of March Have Been $9,000\$ 9,000$9,000

The Following Transactions for the Month of March Have Been $\$ 9,000$