This ledger shows all transactions impacting the cash account this week. Calculate the balance.

This ledger shows all transactions impacting the cash account this week. Calculate the balance.

• A. $200
• B. $350
• C. $300
• D. $150

Answer: (D)

The key idea is that a cash balance is the result of starting cash plus all cash receipts minus all cash payments over the week. To find the ending balance, review the cash account in the ledger, sum every entry that increases cash (receipts) and sum every entry that decreases cash (payments), then apply the net change to the opening balance. The ending figure shown for the week is 150, so that is the balance after processing all cash movements. If the receipts or payments were different, the ending balance would be a different amount, but with this week's transactions the net result yields 150.

The key idea is that a cash balance is the result of starting cash plus all cash receipts minus all cash payments over the week. To find the ending balance, review the cash account in the ledger, sum every entry that increases cash (receipts) and sum every entry that decreases cash (payments), then apply the net change to the opening balance. The ending figure shown for the week is 150, so that is the balance after processing all cash movements. If the receipts or payments were different, the ending balance would be a different amount, but with this week's transactions the net result yields 150.