Total Cash Receipts in July

What are the total cash receipts during July and how can we calculate it based on the given cash account balance?   The total cash receipts during July were $108,010. This can be calculated by analyzing the cash account balance and transactions for the month of July.  

Understanding Total Cash Receipts Calculation

 

Based on the data provided, the cash account balance on July 1 was $37,450. Throughout July, cash payments totaled $115,860, resulting in a balance of $29,600 on July 31. In order to determine the total cash receipts during July, we need to reconcile the starting balance, payments, and ending balance.

 

Starting with the initial balance of $37,450, we deduct the total cash payments of $115,860. This calculation results in a negative balance of -78,410 ($37,450 - $115,860 = -78,410). To reach the ending balance of $29,600, there must have been additional cash receipts to offset the negative balance.

 

Therefore, to calculate the total cash receipts, we add the ending balance of $29,600 to the negative balance of -78,410: $29,600 - (-78,410) = $108,010. This signifies that the total cash receipts during July amounted to $108,010.

  In conclusion, by analyzing the cash account balance and transactions, we can determine that the total cash receipts in July were $108,010.
← The accounting journal entry on 1 august 2023 Choosing the best capital expenditure project project a b or c →

More Posts: