Question

4.00 points Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1 Andrea, the stockholder, invested $15,200 cash in the business. 2. Andrea contributed $37,000 of photography equipment to the business 3. The company paid $3,800 cash for an insurance policy covering the next 24 months. 4. The company received $7,400 cash for services provided during January 5. The company purchased $7.900 of office equipment on credit. 6. The company provided $4,450 of services to customers on account. 7. The company paid cash of $3,200 for monthly rent. 8. The company paid $4,800 on the office equipment purchased in transaction #5 above. 9. Paid $445 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be $63,550 0 0 O O $10,355. $23,800 $18,650 $14,805

Answer 1

Answer: Option-(b): $10,355 Workings: $15,200 $3,800 $7,400 1. Increase in cash (Cash invested by investor) 2. No effect on cash (Equipment contributed by investor) 3. Decrease in cash (Payment for insurance policy) 4. Increase in cash (Cash received for service revenue) 5. No effect on cash (Equipment purchased on credit) 6. No effect on cash (Provided services on account) 7. Decrease in cash (Payment for monthly rent) 8. Decrease in cash (Payment on account) 9. Decrease in cash (Payment monthly utilities) Balance in cash at the end of January $3,200 $4,800 $445 $10,355