Calculate Your Financial Success with Dry Creek Bed and Breakfast
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On August 31, 20x1, the balance in the checkbook and the cash account of the Dry Creek Bed and Breakfast was $5,000 and $2,500, respectively. If the owner made a cash deposit of $1,000 and wrote checks totaling $800, what is the new balance in each account?
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The new balance in the checkbook after making a cash deposit of $1,000 and writing checks totaling $800 will be $5,200. The new balance in the cash account will be $2,700.
Running a successful business like Dry Creek Bed and Breakfast requires careful financial planning and management. Understanding how to calculate and maintain the balance in your checkbook and cash account is key to financial success. Let's break down the scenario provided:
Starting with the initial balances on August 31, 20x1:
Checkbook balance: $5,000
Cash account balance: $2,500
After making a cash deposit of $1,000 and writing checks totaling $800:
New checkbook balance = $5,000 - $800 + $1,000 = $5,200
New cash account balance = $2,500 + $1,000 - $800 = $2,700
By keeping track of these financial transactions accurately, the owner of Dry Creek Bed and Breakfast can ensure the financial health and success of their business. Remember, consistent monitoring and careful record-keeping are essential for making informed financial decisions and achieving your business goals.