The Piedmont Company had the following transactions during June 20X1: a. Collections of accounts receivable, $75,000. b.

Question:

The Piedmont Company had the following transactions during June 20X1:

a. Collections of accounts receivable, $75,000.

b. Payment of accounts payable, $45,000.

c. Acquisition of inventory, $18,000, on open account.

d. Sale of merchandise, $30,000 on open account and $23,000 for cash. The sold merchandise cost Piedmont Company $28,000.

e. Depreciation on equipment of $1,000 in June.

f. Declared and paid cash dividends of $15,000.

Use the balance sheet equation format to enter these transactions into the books of Piedmont Company. Suppose that Piedmont has a cash balance of $15,000 at the beginning of June. What was the cash balance on June 30?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...