70.2K
Verified Solution
Link Copied!
Monroe Company began business on Jan. 1, 2020. During the three month period ending March 31, 2020, Monroe had the following transactions:
- Jan. 1 - Sold 100 shares of stock to stockholders for $10,000.
- Jan. 1 - Borrowed $20,000. No payments are due on this loan until Jan. 1, 2022, and at that time Monroe will owe $21,200.
- Feb. 1 - Paid $900 for insurance for three months.
- Feb. 1 - Bought equipment for $15,000 cash. The equipment is expected to last for five years and then be worthless.
- Feb. 6 - Purchased inventory on account for $8,000.
- Feb. 13 - Bought land for $11,000 cash.
- Feb. 26 - Sold $2,500 of inventory for $7,000 cash.
- March 1 - Paid accounts payable.
- March 8 - Sold one-half of the land for $6,000 cash.
- March 12 - Paid $4,000 in salaries.
- March 26 - Sold $5,000 in inventory for $13,000, half in cash and half on account.
- March 29 - Received utility bill for the first quarter's utilities of $2,600. This will be paid in April.
- March 31 - Paid $1,000 in dividends.
How much did Monroe Co. have in cash at March 31, 2020?
Answer & Explanation
Solved by verified expert
