Cash $7,000Prepaid insurance 700Accounts receivable 3,500Accounts payable 2,800Notes payable 4,200Denton, Capital 1,400Denton, Drawing 700Revenues 21,000Expenses 17,500What did Rusthe Company show as total credits on its trial balance?

Introduction: Trial balance: All the final ledger accounts balances are posted in Trial balance to…

Answered: Cash $7,000 Prepaid insurance 700…

Cash $7,000 Prepaid insurance 700 Accounts receivable 3,500 Accounts payable 2,800 Notes payable 4,200 Denton, Capital 1,400 Denton, Drawing 700

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.2BE: Purchases transactions Hoffman Company purchased merchandise on account from a supplier for 65,000,...

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Cash $7,000
Prepaid insurance 700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Denton, Capital 1,400
Denton, Drawing 700
Revenues 21,000
Expenses 17,500
What did Rusthe Company show as total credits on its trial balance?

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Accounting for Cash and cash equivalents

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