Reference no: EM132983787

Krespy Corp. has a cash balance of $7,500 before the following transactions occur:

1. received customer payments of $965
2. supplies purchased on account $435
3. services worth $850 performed, 25% is paid in cash the rest will be billed
4. corporation pays $275 for an ad in the newspaper
5. bill is received for electricity used $235.
6. dividends of $2,500 are distributed

Problem 1: What is the balance in cash after these transactions are journalized and posted?

Option 1: Cash = $6,027 ($7,500 + $965 - $213 + $275 - $2,500 = $5,903)

Option 2: Cash = $6,453 ($7,500 + $965 + $213 + $275 - $2,500 = $5,903)

Option 3: Cash = $5,903 ($7,500 + $965 + $213 - $275 - $2,500 = $5,903)

Option 4: Cash = $5,477 ($7,500 + $965 - $213 - $275 - $2,500 = $5,903)