In the First Month of Operations, the Total of the Debit

question 90

Multiple Choice

In the first month of operations, the total of the debit entries to Three Sisters Company's cash account amounted to $1,000. The credit entries to the cash account totaled $300. At the end of the month, the cash account has a(n)

• A) $300 credit balance.
• B) $700 debit balance.
• C) $1,300 debit balance.
• D) $700 credit balance.

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Definitions:

Posting References

Notations that make the connection between journal entries and the ledgers to which they are posted.

Purchases Journal

A special accounting journal used to record all purchases of merchandise, supplies, or other items on credit.

Cash Payments Journal

A bookkeeping ledger in which cash payments are recorded, showing outflows of cash.

Office Supplies

Items used in an office for daily operations, including stationary, paper, and other consumables.