question archive Consider the cash account below
Consider the cash account below
Subject:AccountingPrice:3.87 Bought7
Consider the cash account below.
Additional Information: cash disbursements were 80% of collections.
Cash
??
Beg. Balance
115,375
Collections
??
Disbursements
80,275
End Balance
How much was the Beginning Balance of the Cash Account?
A. $57,200
B. $92,300
C. $103,350
D. $35,100
Consider the cash account below.
Additional Information: cash disbursements were 80% of collections.
|
Cash |
|
|
?? |
Beg. Balance |
|
115,375 |
Collections |
|
?? |
Disbursements |
|
80,275 |
End Balance |
|
|
|
How much was the Beginning Balance of the Cash Account?
A. $57,200
B. $92,300
C. $103,350
D. $35,100
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Answer:
A .
Step-by-Step explanation
The calculation for the beginning balance of cash is shown below:
Cash disbursement = $115,375*80%
= $92,300
Ending cash balance = Beginning balance + cash collection - cash disbursement
$80,275 = Beginning balance + $115,375 - $92,300
Beginning balance = $80,275 - $23,075
= $57,200
Hence, the correct option is 'A'.
