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133) Marco Nelson opened a frame shop and completed these transactions: 1. Marco 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) $300. B) $41,500. C) $40,300. D) $38,500. E) $38,700. Answer: C Explanation: Ending Cash Balance = $40,000 (#1) − $1,200 (#3) + $1,500 (#4) = $40,300 Difficulty: 3 Hard Topic: Analyzing Transactions Learning Objective: 02-A1 Analyze the impact of transactions on accounts and financial statements. Bloom's: Apply AACSB/Accessibility: Analytical Thinking / Keyboard Navigation AICPA: BB Industry; FN Measurement

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Test Bank for Fundamental Accounting Principles 24th Edition Wild  

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