During February 2014, its first month of operations, the owner of Schwenn Enterprises invested cash of $40,000. Schwenn had cash sales of $8,000 and paid expenses of $14,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?
A) $6,000 credit
B) $34,000 debit
C) $48,000 debit
D) $26,000 credit

Question

Quizplus · Accepted Answer

The cash balance is calculated as the beginning cash balance plus cash receipts minus cash payments. The beginning cash balance is $40,000, cash receipts are $8,000, and cash payments are $14,000. Therefore, the cash balance at February 28 is $40,000 + $8,000 - $14,000 = $34,000.

During February 2014, Its First Month of Operations, the Owner