e balance in Chuckwagon's cash account a

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chuckwagon Company went into business on July 1, 2020. During
2020, following are some of the company's transactions:
July 1 - Issued 150 shares of stock to stockholders for a total of
$15,000 in cash.
July 1 - Borrowed $15,000 from the bank. Chuckwagon will pay
nothing until July 1, 2025, and then the company will pay
$21,000.
July 15 - Bought land for $10,000 in cash.
Aug. 1 - Bought equipment for $12,000 in cash. The equipment
has an expected useful life of four years and no salvage value.
Sep. 1 - Paid $1,200 for six months of insurance.
• Sep. 30 - Bought inventory for $8,000, one-half in cash and one-
half on account.
Oct. 8 - Sold half of the inventory for $7,000 in cash.
Nov. 25 - Sold one-half of land for $4,500 in cash.
Dec. 1 - Received $1,000 for work that will be performed in
January, 2021.
Dec. 31 - Paid a dividend of $200 in cash.
What was the balance in Chuckwagon's cash account at December
31, 2020?
O $15,100
$15,600
O $14,800
O $15,300
None of the above
Transcribed Image Text:Chuckwagon Company went into business on July 1, 2020. During 2020, following are some of the company's transactions: July 1 - Issued 150 shares of stock to stockholders for a total of $15,000 in cash. July 1 - Borrowed $15,000 from the bank. Chuckwagon will pay nothing until July 1, 2025, and then the company will pay $21,000. July 15 - Bought land for $10,000 in cash. Aug. 1 - Bought equipment for $12,000 in cash. The equipment has an expected useful life of four years and no salvage value. Sep. 1 - Paid $1,200 for six months of insurance. • Sep. 30 - Bought inventory for $8,000, one-half in cash and one- half on account. Oct. 8 - Sold half of the inventory for $7,000 in cash. Nov. 25 - Sold one-half of land for $4,500 in cash. Dec. 1 - Received $1,000 for work that will be performed in January, 2021. Dec. 31 - Paid a dividend of $200 in cash. What was the balance in Chuckwagon's cash account at December 31, 2020? O $15,100 $15,600 O $14,800 O $15,300 None of the above
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