Marco started the shop by investing $40,400 cash and equipment valued at $18,400 in exchange for common stock. Purchased $110 of office supplies on credit.
Paid $1,600 cash for the receptionist's salary.
Sold a custom frame service and collected $4,900 cash on the sale.
Completed framing services and billed the client $240.
What was the balance of the cash account after these transactions were posted?
a. $11,790
b. $12,030
c. $43,700
d. $43,830
e. $43.940.

$43,700

Explanation:

The simplest way to determine the balance of the cash account is to prepare the cash account and see the side with a shortfall well as the amount. A cash account accounts for only cash related transactions.

Marco`s Cash Account

Debit  :  

Capital                                       $40,400

Cash Sales                                  $4,900

Total                                          $45,300

Credit :

Receptionist's salary                   $1,600

Balance c/d (missing amount) $43,700

Total                                          $45,300

thus,

the balance of the cash account after these transactions is $43,700.

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