Sales (units) Selling price Expenses Opening cash Balance $15 $2,500 May 800 $8,000 June 900 July 1000 $10,000 $12,000 Cash from sales is collected one month in arrears At the start of May $5,000 was owed by customers from the previous month The expenses include depreciation of $2,000 a month Expenses are paid during the month they are incurred $5,000 $2,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What are the closing cash balances for the months

Sales (units)
Selling price
Expenses
Opening cash
Balance
$15
$2,500
May
800
$8,000
June
900
July
1000
$10,000 $12,000
Cash from sales is collected one month in arrears
At the start of May $5,000 was owed by customers from the previous month
The expenses include depreciation of $2,000 a month
Expenses are paid during the month they are incurred
$5,000
$2,000
Transcribed Image Text:Sales (units) Selling price Expenses Opening cash Balance $15 $2,500 May 800 $8,000 June 900 July 1000 $10,000 $12,000 Cash from sales is collected one month in arrears At the start of May $5,000 was owed by customers from the previous month The expenses include depreciation of $2,000 a month Expenses are paid during the month they are incurred $5,000 $2,000
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