Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

After recording the journal entries in requirement 2, what should the balance in the Cash account be?

$2,500 debit balance

$0 balance

$5,000 debit balance

$5,000 credit balance

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Verified step by step guidance

Step 1: Review the journal entries recorded in requirement 2 to identify all transactions affecting the Cash account. Look for both debit and credit entries related to Cash.

Step 2: Determine the opening balance of the Cash account, if provided. In this case, the problem mentions a $2,500 debit balance as the starting point.

Step 3: Add all debit entries to the opening balance of the Cash account. Debit entries represent increases in cash.

Step 4: Subtract all credit entries from the total obtained in Step 3. Credit entries represent decreases in cash.

Step 5: Calculate the final balance in the Cash account by combining the results from Steps 3 and 4. Ensure the balance is correctly classified as either a debit or credit balance based on the net result.