Question

The Bloom Company issued stock for $52,300 cash on January 20, 2011. During 2011, the company...

The Bloom Company issued stock for $52,300 cash on January 20, 2011. During 2011, the company recorded revenue on account of $17,800 and expenses for which cash was paid of $10,500. Bloom received $10,540 cash from accounts receivable. The company also purchased land for $6,425 cash. Based on this information, the amount of change in cash for 2011 was

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Answer #1
Solution:
The amount of change in cash for 2011 = $45,915
Working Notes:
Beginning cash balance 0 ( Not given , hence assumed that it was Zero )
Add: Cash Proceeds from stock issuance $52,300
Less: Cash Expenses of the period $10,500
Add: Cash received from accounts receivable $10,540
Less: Purchase of land in cash $6,425
Cash at the End of the period $45,915
The amount of change in cash for 2011 = Cash at the End of the period - Beginning cash balance
= $45,915 - 0
=$45,915
Notes: Revenue of $17,800 is not added in above because it recorded on accounts means it will be received in future not now during the period in cash.
Please feel free to ask if anything about above solution in comment section of the question.
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