Reference no: EM132828091
Problem 1: At the beginning of the period, Addy had a cash balance of ?20,000 and a notes payable of ?15,000. During the period, Addy collected ?11,000 accounts receivable, paid ?8,000 notes payable, and issued additional notes payable of ?5,000 in exchange for cash. How much are the ending balances of cash and notes payable, respectively?
Option 1: Cash 17,000 Notes Payable 20,000
Option 2: Cash 20,000 Notes Payable 12,000
Option 3: Cash 28,000 Notes Payable 12,000
Option 4: Cash 36,000 Notes Payable 20,000