Question

Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $41,300 cash and equipment valued at $19,300 in exchange for common stock. Purchased $200 of office supplies on credit. Paid $2,500 cash for the receptionist's salary. Sold a custom frame service and collected $5,800 cash on the sale. Completed framing services and billed the client $330. What was the balance of the cash account after these transactions were posted?

Answer 1

$44,600

Step-by-step explanation:

The computation of the balance of the cash account after the transactions are posted is shown below:

Invested cash in shop $41,300

Less: Paid cash for receptionist salary -$2,500

Add: Receive cash from sale of frame $5,800

Balance of the cash account $44,600

We simply added the cash received and deduct the cash paid to the invested amount of cash in a shop so that the correct value could arrive