Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $41,100 cash and equipment v

Question

3 years ago

11

Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $41,100 cash and equipment v

alued at $19,100 in exchange for common stock. Purchased $180 of office supplies on credit. Paid $2,300 cash for the receptionist's salary. Sold a custom frame service and collected $5,600 cash on the sale. Completed framing services and billed the client $310. What was the balance of the cash account after these transactions were posted?

Business

1 answer:

Andrew [12] · Answer 1 · 2022-09-04T03:22:05+03:00

Answer:

$44,400

Explanation:

The computation of the balance of the cash account after posting of these transactions are shown below:

= Invested cash amount - cash paid for receptionist's salary + cash collection from sale of frame service

= $41,100 - $2,300 + $5,600

= $44,400

The other items do not involved any cash transactions. Therefore they are not relevant and thus they not considered in the computation part