The Cash T-account has a beginning balance of $21,000

Accounting Jun 23, 2021

The Cash T-account has a beginning balance of $21,000. During the year, $100,000 was 7. debited and $110,000 was credited to the account. What is the ending balance of Cash?
a. $11,000 debit balance b. $11,000 credit balance c. $31,000 credit balance d. $31,000 debit balance

Expert Solution

Answer

a .

Explanation

Computation of Ending Cash Balance

A debit to the account means cash balance has increased and credit to the account means cash balance has decreased.

Ending cash balance = Beginning balance + Debited amount - Credited amount

= $21,000 + $100,000 - $110,000

= $11,000

So, the correct option is A "$11,000 debit balance".

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