On June 30,the Cash account of Lutness Company had a normal balance of $4,300.During July the account was debited for a total of $3,400 and credited for a total of $3,600.What was the balance in the Cash account on August 1?
A) $-0.
B) $4,100 debit.
C) $3,400 credit.
D) $3,400 debit.
E) $4,100 credit.

Question

Quizplus · Accepted Answer

We need to calculate the balance of the Cash account on August 1.

Starting balance on June 30 (normal balance) = $4,300

Total debits in July = $3,400

Total credits in July = $3,600

To find the balance on August 1, we need to subtract the total debits from the total credits and add the result to the starting balance:

$4,300 - $3,400 + $3,600 = $4,500

The balance on August 1 is $4,500. However, since the question asks for the balance in the Cash account, we have to take into account that the account has a normal debit balance.

$4,500 is a credit balance, so we need to subtract it from zero to get the debit balance:

$0 - $4,500 = $4,500 debit or -$4,500

Therefore, the best choice is B, $4,100 debit.

On June 30,the Cash Account of Lutness Company Had a Normal