Question

The cash account had a normal balance of $48,000 at the beginning of the month. during the month, langdon company received cash payments from its customers of $22,000 and made cash payments of $8,000 for expenses incurred and $6,000 on account. the balance in the cash account after posting these transactions is

Answer 1

Calculation of balance in cash account after posting the given transactions;

Cash account normal (Debit) balance $48,000

Add: Cash received from Customers $22,000

Less: Cash Paid for Expenses incurred $8,000

Cash Balance = (48000+22000-8000) = $62,000

(Note: Expenses on account $6,000 shall not affect the cash balance as there is no cash transaction)

Hence the balance in cash account after posting the given transactions shall be $62,000