As of December 31, Year 1, Mason Company had $500 cash. During Year 2, Mason earned $1,200 of cash revenue and paid $800 of cash expenses. What is the amount of cash that will be reported on the balance sheet at the end of Year 2?

Question

Miya Li

Business

19 June, 16:11

As of December 31, Year 1, Mason Company had $500 cash. During Year 2, Mason earned $1,200 of cash revenue and paid $800 of cash expenses. What is the amount of cash that will be reported on the balance sheet at the end of Year 2?

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Answers (1)

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Isaias Edwards · Answer 1

The amount of cash that will be reported on the balance sheet at the end of Year 2 is $900

Explanation:

Mason Company carries its operations based on cash. In other words, its purchases and sales are in cash, not credit.

The amount of cash of Mason Company will be:

Beginning Balance + cash revenue - cash expenses

$500 Beggining Balance

+$1,200 cash revenue

- $800 cash expenses

= $900