Question

Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $40,200 cash and equipment valued at $18,200 in exchange for common stock. Purchased $90 of office supplies on credit. Paid $1,400 cash for the receptionist's salary. Sold a custom frame service and collected $4,700 cash on the sale. Completed framing services and billed the client $220. What was the balance of the cash account after these transactions were posted?

Answer 1

Answer:

$43,500

Explanation:

Calculation for the balance of the cash account after these transactions were posted

Using this formula

Cash account balance =Amount invested-Receptionist's salary+Cash on sale

Let plug in the formula

Cash account balance =$40,200-$1,400+$4,700

Cash account balance =$43,500

Therefore the balance of the cash account after these transactions were posted will be $43,500