Larry Bar Opened a Frame Shop and Completed These Transactions

Multiple Choice

Larry Bar opened a frame shop and completed these transactions: 1. Larry 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 a $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.