Larry bar opened a frame shop and completed these transactions: larry started the shop by investing $41,100 cash and equipment valued at $19,100 in exchange for common stock. purchased $180 of office supplies on credit. paid $2,300 cash for the receptionist's salary. sold a custom frame service and collected $5,600 cash on the sale. completed framing services and billed the client $310. what was the balance of the cash account after these transactions were posted?
The computation of the balance of the cash account after posting of these transactions are shown below:
= Invested cash amount - cash paid for receptionist's salary + cash collection from sale of frame service
= $41,100 - $2,300 + $5,600
The other items do not involved any cash transactions. Therefore they are not relevant and thus they not considered in the computation part