Irena Company had a beginning normal balance of $35,000 in the cash account. The accountant posted a $2,000 credit on June 2, a $350 credit on June 4, and a $5,250 debit on June 20. What is the balance of cash in the general ledger?

Question

Quizplus · Accepted Answer

The beginning balance is $35,000.
Then, a credit of $2,000 was posted on June 2, so the new balance is: 
$35,000 - $2,000 = $33,000
Another credit of $350 was posted on June 4, so the new balance is: 
$33,000 - $350 = $32,650
Finally, a debit of $5,250 was posted on June 20, so the new balance is: 
$32,650 - $5,250 = $27,400
Since the ending balance is a debit, the answer is C) $37,900 debit.

Irena Company Had a Beginning Normal Balance of $35,000 in the Cash