Question

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Andrea invested $14,300 cash in the business in exchange for common stock. 2. Andrea contributed $28,000 of photography equipment to the business. 3. The company paid $2,900 cash for an insurance policy covering the next 24 months. 4. The company received $6,500 cash for services provided during January 5. The company purchased $7,000 of office equipment on credit. 6. The company provided $3,550 of services to customers on account. 7. The company paid cash of $2,300 for monthly rent. 8. The company paid $3,900 on the office equipment purchased in transaction #5 above. 9. Paid $355 cash for January utilities. Based on this information, the balance in the cash account at the end of January would be: Multiple Choice $16,850 O $51.850. O $14,895. O $11,345. O $21,100.

Answer 1

The balance of Cash Account at the end of the january will be $11,345.00

Explation:-

Apple Photography

Cash Account

For the month ended January,2XXX

Dr. Cr.

SL NO.	Description	$	SL NO.	Description	$
1	To Capital A/c (Being capital invested by Andea apple in exchange of common stock.)	14300	3	By Insurence Expenses A/c (Being insurence expenses paid for whole year)	2900
4	To Sales A/c (Being cash received from customer for providing service)	6500	7	By Office Rent A/c (Being Office rent paid)	2300
			8	By Suppliers (Being partial amount paid to supplier on account of purchase of office equipment.)	3900
			9	By Utilities A/c (Being office utilities bought for the monthof janary.)	355
				By balan​​​​​ce C/F	11345
		20800			20800

Here in the cash book all cash related transactions are recorded.For this reason

Transaction no 2 is not entered in cash book it will be recorded as

Photography Equipment A/c $28000

Capital A/c $28000

Similarly transaction no 5 also not taken in cash book but its entry will be

Office Equipment A/c $7000

To Suppliers A/c $7000

Atlast the transaction no 6 is also a credit transaction and it will not recod in Cash Book and its accounting entry will be

Customer A/c $3550

To Sales A/c $3550