Question

Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $40,700 cash and equipment valued at $18,700. Purchased $140 of office supplies on credit. Paid $1,900 cash for the receptionist's salary. Sold a custom frame service and collected $5,200 cash on the sale. Completed framing services and billed the client $270. What was the balance of the cash account after these transactions were posted

Answer 1

Answer:

$44,000

Explanation:

Computation of Cash account balance

Particulars                                        Amount

Initial investment of cash                $40,700

Add: Cash collected from sales     $5,200

Less: Salaries paid                          $1,900

Balance of cash account               $44,000