During February 2022, its first month of operations, the owner of Schwenn Enterprises invested cash of $100,000.Schwenn had cash sales of $20,000 and paid expenses of $35,000.Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28, 2022?
A)$15,000 credit
B)$85,000 debit
C)$120,000 debit
D)$65,000 credit

Question

Quizplus · Accepted Answer

The cash balance is calculated by adding the initial investment and cash sales, then subtracting the expenses: $100,000 (investment) + $20,000 (sales) - $35,000 (expenses) = $85,000 debit balance.

During February 2022, Its First Month of Operations, the Owner