Mr. Smith opened a art gallery and as a dealer completed these transactions: 1. Started the Gallery, 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 receptionist 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?
Mr. Smith opened a art gallery and as a dealer completed these transactions: 1. Started the Gallery, 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 receptionist 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?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 1AP
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
Transcribed Image Text:Mr. Smith opened a art gallery and as a dealer completed
these transactions:
1. Started the Gallery, 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 receptionist 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?
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