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

Cindy wrote two checks for $200 and $350, and then deposited cash into her account. If her account balance increased by $150 after these transactions, which of the following could be the amount of the third check and the cash that Cindy deposited?

Third check: $400; Cash deposited: $700

Third check: $100; Cash deposited: $800

Third check: $250; Cash deposited: $500

Third check: $300; Cash deposited: $600

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Verified step by step guidance

Step 1: Begin by understanding the problem. Cindy's account balance increased by $150 after writing two checks and depositing cash. The goal is to determine the correct combination of the third check amount and the cash deposited.

Step 2: Write down the equation for the account balance change. The account balance change is calculated as: $ \text{Cash Deposited} - (\text{Check 1} + \text{Check 2} + \text{Third Check}) $. Substitute the values for Check 1 ($200) and Check 2 ($350).

Step 3: Rearrange the equation to solve for the relationship between the third check and the cash deposited. The equation becomes: $ \text{Cash Deposited} - \text{Third Check} = \text{Account Balance Increase} + (\text{Check 1} + \text{Check 2}) $. Substitute the known values: $ \text{Cash Deposited} - \text{Third Check} = 150 + (200 + 350) $.

Step 4: Simplify the equation to find the total amount of cash deposited minus the third check. This gives: $ \text{Cash Deposited} - \text{Third Check} = 700 $.

Step 5: Test each option provided in the problem to see which combination of the third check and cash deposited satisfies the equation $ \text{Cash Deposited} - \text{Third Check} = 700 $. For example, substitute $ \text{Third Check} = 100 $ and $ \text{Cash Deposited} = 800 $ into the equation to verify if it holds true.