Question

During February 2015 its first month of operations, the stockholders of Ariel Pink Enterprises invested cash of $50,000. Ariel had cash revenues of $10,000 and paid expenses of $14,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?

Answer 1

Answer:

46,000 ending cash balance

Explanation:

50,000 Ariel Investment

+ 10,000 cash revenues

- 14,000 cash expenses

46,000 ending cash balance

(assuming no other transaction impacted the cash account)

When you are asked for a ending value, you should identify first, if there is a beginning value, something which start the balance of the account.

Like inventory in hand, supplies in hand, equipment, accounts payable

Then you have to figure out which trasnaction incresae the balance

and which decrease it.

Finally you put them together:

beginning + increase - decrease = ending