The Carmichael Company started operations this month and had the following transactions 1. Owners invested $20,000 to start the company 2. Purchased 55 units of inventory for $7,425 (total) 3. Sold 25 units of inventory for $4,750 (total) 4. Paid $2,900 for office rent 5. Paid payroll of $4,500 6. Paid dividends of $800 What are the company's cash balance at the end of the month?

Question

Layne Gutierrez

Business

12 July, 00:20

The Carmichael Company started operations this month and had the following transactions 1. Owners invested $20,000 to start the company 2. Purchased 55 units of inventory for $7,425 (total) 3. Sold 25 units of inventory for $4,750 (total) 4. Paid $2,900 for office rent 5. Paid payroll of $4,500 6. Paid dividends of $800 What are the company's cash balance at the end of the month?

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Answers (1)

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Willow Gregory · Answer 1

The company's cash balance at the end of the month is $9,125.

Explanation:

Cash Account DR. CR. Balance

1. Owners Investment $20,000 $20,000

2. Purchased 55 units $7,425 $12,575

3. Sale 25 units $4,750 $17,325

4. Office Rent Payment $2,900 $14,425

5. Payroll Payment $4,500 $9,925

6. Paid dividends of $800 $9,125