Following are transactions of Gotebo Tanners,Inc.,a new company,during the month of January 2012: 1.Issued 10,000 shares of common stock for $15,000 cash.
2)Purchased land for $12,000,signing a note payable for the full amount.
3)Purchased office equipment for $1,200 cash.
4)Received cash of $14,000 for services provided to customers during the month.
5)Purchased $300 of office supplies on account.
6)Paid employees $10,000 for their first month's salaries.
What was the balance of Gotebo's Cash account following these six transactions?

Question

Quizplus · Accepted Answer

The cash account balance is calculated as follows:  1. Initial cash from issuing stock: +$15,000  2. Cash spent on office equipment: -$1,200  3. Cash received for services: +$14,000  4. Cash paid for salaries: -$10,000  Total cash balance = $15,000 - $1,200 + $14,000 - $10,000 = $17,800.

Following Are Transactions of Gotebo Tanners,Inc