Asked by
Joseline Ortega
on Nov 14, 2024
Verified
In the first month of operations for Pendleton Industries the total of the debit entries to the cash account amounted to $33000 ($13000 investment by the owner and revenues of $20000) . The total of the credit entries to the cash account amounted to $21000 (purchase of equipment $8000 and payment of expenses $13000) . At the end of the month the cash account has a(n)
A) $5000 credit balance.
B) $5000 debit balance.
C) $12000 debit balance.
D) $12000 credit balance.
Debit Entries
Accounting records that increase an asset or expense account, or decrease a liability, equity, or revenue account.
Credit Entries
Accounting entries that increase liability or equity accounts or decrease asset or expense accounts.
Cash Account
An account recording all transactions involving cash inflows and outflows.
- Analyze the effect of transactions on cash balance.
Verified Answer
JB
Learning Objectives
- Analyze the effect of transactions on cash balance.