Zed Bennett opened an art gallery and as a dealer completed these transactions: Started the gallery, Artery, 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 painting for an artist and collected a $4,500 cash commission on the sale.
5) Completed an art appraisal and billed the client $200.
What was the balance of the cash account after these transactions were posted?
A) $12,230.
B) $12,430.
C) $43,300.
D) $43,430.
E) $61,430.

Question

Quizplus · Accepted Answer

The initial cash investment was $40,000. After paying $1,200 for salary, the cash balance is $38,800. Adding the $4,500 commission from the painting sale, the cash balance becomes $43,300.

Zed Bennett Opened an Art Gallery and as a Dealer