Question

Given the following transactions, what is the balance in the cash account? 1. The owner started...

Given the following transactions, what is the balance in the cash account? 1. The owner started the company by investing $10,000 cash. 2. The company paid $3,000 for six months' rent in advance. 3. The company acquired $2,400 in inventory by paying $800 cash and putting $1,600 on credit. 4. The company sold inventory costing $1,500 for $3,100 on account. A. $4,600 debit balance B. $5,200 debit balance C. $6,200 debit balance D. $7,700 debit balance E. $11,000 debit balance

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Answer #1
Owner's Investment       10,000
Advance Rent paid        -3,000
Paid for Inventory            -800
Sales on credit                -  
Cash Balance          6,200
Hence correct answer is option C. $6,200 debit balance
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