The trial balance of ABC Ltd. at July 1, 2022 shows the beginning balance of cash...

 

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The trial balance of ABC Ltd. at July 1, 2022 shows the beginning balance of cash is $28,000. During the month of July, the company performed the following transactions: July 2 Paid $1,800 cash for July's rent. 5 Borrowed $40,000 from a local bank. 6 Used the proceeds from the bank loan to purchase land. 10 Paid $16,000 of the accounts payable from the July 1 opening balance. 12 Earned service revenue of $27,000, collected $20,000 at the time of sale with the balance on account. 18 Purchased inventory totaling $5,000 on account. 21 Received a $320 utility bill that will be paid in August. 27 Received a $3,900 cash advance from a customer for work to be performed in August. 28 Collected $14,600 from customers. 29 Paid $3,600 for income tax installment for July. 31 Paid $6,800 for July employee salaries. 31 Declared and paid a cash dividend of $7,000. 31 Paid $2,400 for a one-year insurance policy effective August 1. What is the balance of cash on July 31, 2022? The trial balance of ABC Ltd. at July 1, 2022 shows the beginning balance of cash is $28,000. During the month of July, the company performed the following transactions: July 2 Paid $1,800 cash for July's rent. 5 Borrowed $40,000 from a local bank. 6 Used the proceeds from the bank loan to purchase land. 10 Paid $16,000 of the accounts payable from the July 1 opening balance. 12 Earned service revenue of $27,000, collected $20,000 at the time of sale with the balance on account. 18 Purchased inventory totaling $5,000 on account. 21 Received a $320 utility bill that will be paid in August. 27 Received a $3,900 cash advance from a customer for work to be performed in August. 28 Collected $14,600 from customers. 29 Paid $3,600 for income tax installment for July. 31 Paid $6,800 for July employee salaries. 31 Declared and paid a cash dividend of $7,000. 31 Paid $2,400 for a one-year insurance policy effective August 1. What is the balance of cash on July 31, 2022?

Answer rating: 100% (QA)

Beginning balance of cash July 1 2022 28000 Cash inflows Service revenue collected 20000 Cash ... View the full answer