Hi can anyone help me, i tried but it is coming up incorrect.
July 1. Bills are sent to clients for services provided in June in the amount of $800.
July 8. First Bank loans the company $2,500. The company will pay back the loan in August.
July 9. Office Supply Corp. delivers furniture (41,060) and expendable office supplies ($160) to Random, leaving an invoice for $1,220.
July 15. Payment is made to Office Supply Corp. for the furniture and office supplies delivered on July 9.
July 23. A $430 bill for electricity for the month of June is received and will be paid on its due date in August.
July 31. Salaries are paid to employees in the amount of $850.
But WHAT is th e question?
Sra
To determine the correct answer, we need to analyze the transactions that occurred in July:
1. Bills sent to clients for services provided in June: The amount is given as $800. This transaction does not impact any cash or accounts receivable; it only creates an accounts receivable entry.
2. First Bank loans the company: The loan amount is $2,500 and will be paid back in August. This transaction increases cash and creates a liability (loan payable).
3. Office Supply Corp. delivers furniture and office supplies: The invoice amount is $1,220. This transaction increases accounts payable, representing an amount owed to a vendor.
4. Payment made to Office Supply Corp.: The payment is made for the furniture and office supplies delivered on July 9. This transaction decreases cash and accounts payable.
5. Electricity bill received: The bill amount is $430 for the month of June. This transaction increases accounts payable.
6. Salaries paid to employees: The salary amount is $850. This transaction decreases cash.
It seems like you might be trying to determine the correct cash balance after all transactions have been recorded. To do this, you need to calculate the net cash flow by subtracting cash outflows (payments) from cash inflows (receipts):
Net Cash Flow = Cash Inflows - Cash Outflows
In this case, the cash inflows are the loan from First Bank ($2,500) and the payment from clients for services provided in June ($0 since it creates an accounts receivable but does not impact cash). The total cash inflows are $2,500.
The cash outflows are the payment to Office Supply Corp. ($1,220), the payment of salaries to employees ($850), and the electricity bill ($0 since it is not paid in July). The total cash outflows are $2,070.
To calculate the net cash flow, subtract the total cash outflows from the total cash inflows:
Net Cash Flow = $2,500 - $2,070 = $430
Therefore, the correct answer for the ending cash balance in July, after all transactions have been recorded, is $430.