Larry Bar Opened a Frame Shop and Completed These Transactions

question 62

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

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Definitions:

Otolith Organs

Structures in the inner ear that are responsible for detecting linear accelerations and head tilts, thereby contributing to balance and spatial orientation.

Vestibular System

The sensory system responsible for providing our brain with information about motion, head position, and spatial orientation; it also helps with balance.

Histamine

A compound involved in local immune responses, as well as regulating physiological functions in the gut and acting as a neurotransmitter.

Pain Sensation

The uncomfortable feeling often caused by intense or damaging stimuli, interpreted and processed by the nervous system.