The Following Transactions Have Been Journalized and Posted to the Proper

question 83

Essay

The following transactions have been journalized and posted to the proper accounts.
1)Mark Call invested $7,000 cash in his new design services business.
2)The business paid the first month's rent of $700.
3)The business purchased equipment by paying $2,000 cash and executing a note payable for $4,500.
4)The business purchased supplies for $850 cash.
5)The business billed a client for $4,000 of design services completed.
6)The business received $3,000 of the account for the completed services.
What is the balance in Cash?
A) $7,850
B) $6,450
C) $8,450
D) $8,150

• A) $7,850
• B) $6,450
• C) $8,450
• D) $8,150

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Definitions:

Producer Surplus

The difference between the amount a producer is paid for a good and the minimum amount they would be willing to accept.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Cost to Sellers

The expenses incurred by sellers in providing a good or service, including production costs, labor, materials, and overhead.

Value to Buyers

The maximum amount of money buyers are willing to pay for a good or service, reflecting the perceived utility or benefit derived from the purchase.