Mesquite,Inc.engaged in the following transactions during October: What is the balance in cash after these transactions?
A)$940
B)$1,140
C)$740
D)$2,440

Question

Mesquite,Inc.engaged in the following transactions during October:  What is the balance in cash after these transactions?
A)$940 
B)$1,140 
C)$740 
D)$2,440

Quizplus · Accepted Answer

-Starting cash balance is $500.
-Received $400 from customers, so cash increases to $900.
-Paid $250 for rent and $210 for supplies, so cash decreases by $460 ($250 + $210) to $440.
-Sold merchandise for $600, so cash increases to $1,040.
-Paid $100 for gas and $200 for repairs, so cash decreases by $300 ($100 + $200) to $740.
-Received $400 from bank loan, so cash increases to $1,140.
Therefore, the ending balance in cash is $1,140.