The following transactions occurred during May 2013 of the Lion, Inc.€™s operations:

1. Sales on account were $5,700.

2. Interest Expense for the month of May was $1,600. Lion made a monthly interest payment on the 20th of the month.

3. The Cash, Accounts Receivable, and Interest Payable beginning and ending balances were:

Requirements
1. What was the amount paid for interest in May?
2. What was the amount received from customers in May?
3. What do (1) and (3) represent?
4. What was the Cash ending balance?

Transcribed Image Text:

Accounts Receivable 2,480 1,730 Cash Interest Payable 4,850 4 2,200 1,400