The controller for Tires and More,Inc.has recorded the following transactions during the month: the purchase of equipment for $8,500 cash;payment of $6,300 for 3 months rent;and,collection of $2,400 from a customer for services performed.At the beginning of the month the owner established the business by making an investment of $15,000 cash.What is the balance in the Cash account at the end of the month,and is the balance a debit or a credit?
A)$2,600 debit.
B)$2,600 credit.
C)$6,800 debit.
D)$15,200 debit.

Question

Quizplus · Accepted Answer

The cash account starts with $15,000 from the owner's investment. Subtract $8,500 for equipment and $6,300 for rent, then add $2,400 collected from a customer. The ending balance is $2,600, and since cash is an asset, it has a debit balance.

The Controller for Tires and More,Inc