Question

The following entries were made by the accountant of Patel Pastries during its first month of operation:

1.         James Patel, the owner, deposited $3,000 in the business's new checking account.

2.         Patel Pastries paid the first month's rent of $400 in cash.

3.         Patel Pastries purchased equipment by signing a note payable of $11,000.

4.         Cash sales for the month were $4,500.

5.         Patel Pastries purchased cooking supplies for $1,400 cash.

           After the accountant posts these entries to the general ledger, what is the balance in the Cash account?

answer choices

$7,500

$7,100

$5,700

$16,700

Answer 1

	Cash Account
	Receipts
	Owners deposit	$             3,000
	Cash Sales	$             4,500
	Payments
	Rent	$                400
	Cooking supplies	$             1,400
	Balance	$             5,700