Question

Larry Bar opened a frame shop and completed these transactions:1. Larry started the shop by investing $40,800 cash and equipment valued at $18,800.2. Purchased $150 of office supplies on credit.3. Paid $2,000 cash for the receptionist's salary.4. Sold a custom frame service and collected a $5,300 cash on the sale.5. Completed framing services and billed the client $280.What was the balance of the cash account after these transactions were posted?

Answer 1

Answer:

$44,100

Explanation:

Larry Bar

Investment in Cash - Receptionist's salary+Sales of custom frame = Cash account balance

Investment in Cash $40,800

Paid $2,000 Receptionist's salary $2,000

Sales of custom frame $5,300

Hence:

$40,800-$2,000+$5,300

=$44,100

Cash account balance will be $44,100