Larry Bar Opened a Frame Shop and Completed These Transactions

question 64

Multiple Choice

Larry Bar opened a frame shop and completed these transactions: 1.Larry started the shop by investing $40,000 cash and equipment valued at $18,000 in exchange for common stock.
2.Purchased $70 of office supplies on credit.
3.Paid $1,200 cash for the receptionist's salary.
4.Sold a custom frame service and collected $1,500 cash on the sale.
5.Completed framing services and billed the client $200.
What was the balance of the cash account after these transactions were posted?

• A)$300.
• B)$41,500.
• C)$40,300.
• D)$38,500.
• E)$38,700.

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Definitions:

Color Vision

The ability of the human eye and brain to distinguish objects based on the wavelengths of the light they reflect, emit, or transmit.

Flexibility

The quality of bending easily without breaking, or the ability to adapt to new, different, or changing requirements.

Pupil

The adjustable opening in the center of the eye through which light enters and is focused on the retina.

Velocity

A physical vector quantity that represents the rate of change of position of an object with direction.