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 in exchange for common stock. 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. $41,500.
B. $38,500.
C. $40,300.
D. $38,700.
E. $300.
Answer: C
You might also like to view...
Use the following information to answer the following questions. Izabelle and Marta are forming a partnership. Izabelle will invest a piece of equipment with a book value of $5,000 and a fair market value of $15,000. Marta will invest a building with a book value of $30,000 and a fair market value of $35,000. At what amount will Marta's capital account be recorded?
A) $50,000 B) $15,000 C) $30,000 D) $35,000
________ detect and correct significant variations, or discrepancies, in the results of plans and activities.
A. Quality standards B. Control systems C. Quantity standards D. Performance systems E. Communication strategies
Amanda ordered fifty personalized sweatshirts from King Manufacturing Company. After the shirts were specially imprinted, but before they were mailed, Amanda called King Manufacturing to disavow the contract. The next day the sweatshirts were stolen. In this case:
a. Amanda must pay the entire purchase price, because she breached the contract. b. King Manufacturing will have to bear the entire loss, because it had not yet mailed the shirts. c. Amanda must bear the entire loss, because the shirts were identified to the contract. d. King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by insurance.
Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 24,000poundsStandard price of direct materials$6.00per poundMaterial price variance$6,000UnfavorableMaterial quantity variance$2,400Favorable?The actual price per pound of direct materials purchased in June was:
A. $6.10 per pound B. $6.25 per pound C. $6.30 per pound D. $5.90 per pound