On July 1, the cash account balance was $37,450. During July, cash payments totaled $115,860 and the July 31 balance was $29,600

On July 1, the cash account balance was $37,450. During July, cash payments totaled $115,860 and the July 31 balance was $29,600. Determine the cash receipts during July.

Answer:

Using the following T account, solve for the amount of cash receipts (indicated by ? below).

July 1 Bal. 37,450 115,860 Cash payments Cash receipts ? July 31 Bal. 

29,600 $29,600 = $37,450 + Cash receipts – $115,860 

Cash receipts = $29,600 + $115,860 – $37,450 = $108,010

Pinnacle Consulting Company makes most of its sales and purchases on credit. It uses the five journals described in this chapter

Pinnacle Consulting Company makes most of its sales and purchases on credit. It uses the five journals described in this chapter (revenue, cash receipts, purchases, cash payments, and general). Identify the journal most likely used in recording the postings for selected transactions indicated by letter in the T accounts, as follows:

CashPrepaid Rent a. 10,940 b. 6,500 e. 1,200 Accounts Receivable Accounts Payable c. 11,790 a. 10,940 b. 6,500 d. 7,400 Office Supplies Fees Earned d. 7,400c. 11,790 Rent Expense e. 1,200

Answer:

Cash receipts journal: (a)

Cash payments journal: (b)

Revenue journal: (c)

Purchases journal: (d)

General journal: (e)