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At the beginning of 2018, Rex Co. showed a debit balance in the cash account of $20,500. Total debits to this account during the year were $45,000, and total credits during the year were $35,000. The net (increase/decrease) in cash for 2018 equals $ .

Respuesta :

Answer:

increase ; $30,500

Explanation:

The computation of the net cash increase or decrease is shown below:

=  Debit balance in the cash account + total debit account balance - total credit account balance

= $20,500 + $45,000 - $35,000

= $30,500

Since the cash account has a debit balance and the total of debit balance is greater than the total of credit balance so there would be an increase in net cash      

abiolataiwo2015

Based on the information given the net increase in cash for 2018 equals $10,000 increase.

First step is to calculate the Ending balance

Ending balance=Beginning cash + Debit balances - Credit balances

Ending balance=$20,500 + $45,000 - $35,000

Ending balance= $30,500

Second step is to calculate Net increase in cash

Net increase in cash = Ending cash balance - Beginning cash balance

Net increase in cash = $30,500 - $20,500

Net increase in cash=$10,000 increase

Inconclusion  the net increase in cash for 2018 equals $10,000 increase.

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