Accounting 25th Edition by Carl Warren, James Reeve, Jonathan Duchac

Exercise 3

McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making all payments by check. The cash account as of December 31 has a credit balance of $1,850, and there is no undeposlted cash on hand, (a) Assuming no errors occurred during journalizing or posting, what caused this unusual balance (b) Is the $1,850 credit balance in the cash account an asset, a liability, owner's equity, a revenue, or an expense