Question

Diamond Company had the following transactions during​ June: Performed services for​ $3,000 on​ account; received cash on​ account, $8,000; paid​ $900 for repair​ expense; paid​ $1,600 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June​ transactions?

Answer 1

Answer:

Effect = $5500

Explanation:

Given data:

Service amount =$3000

Received cash amount $8000

Expenses for repair = $900

Paid to supplier = $1600

Received cash amount is $8000

Paid cash   = $1600 + $900

Paid cash= $2500

combined effect is calculated as

combined effect = received cash - paid cash

Effect = $8000 - $2500

Effect = $5500