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Madison Company has a beginning cash balance on January 1 of $30,000. In January, they...

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Accounting

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Madison Company has a beginning cash balance on January 1 of $30,000. In January, they received $50,000 from operations and had expenditures of $31,000 for merchandise purchases, $6,000 for rent, and $4,000 for salaries. Management will purchase and pay for new equipment in January which will cost $5,000. Depreciation expense for the month is $8,000. At the end of December of the previous year, they borrowed $12,000 from a family member. They plan on making monthly payments of $2,000 plus interest each month beginning in January. They will make the payment and pay the Interest at the end of each month. The interest rate is 12% per year. Please provide the following selected information for January and February Cash Before Financing Activities in January The amount of interest to be paid in January Ending Cash in January The amount of interest to be paid in February

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