Diamond Company had the following transactions during June: Performed services for $3,000 on account; received cash on account,$8,000; paid $900 for repair expense; paid $1,600 to a supplier that it owed from the previous month.What is the combined effect on Cash of these June transactions?
A) $5,500 increase
B) $5,500 decrease
C) $8,000 increase
D) $2,500 decrease

Question

Quizplus · Accepted Answer

A) Cash = $8,000 - $900 - $1,600 = $5,500 increase

Diamond Company Had the Following Transactions During June: Performed Services