QUESTION 1 Marshall Company (the firm] was formed on March 31, Year 1, when three owners each invested $30,000 cash. Also on March 31, Year 1, another person lent $40,000 cash to the firm to be repaid in full along with $3,600 in interest on March 31, Year 2. During Year 1, the firm purchased supplies inventory on account at a cost of $4,000. In Year 1, 70% of supplies purchased had been paid for. By the end of Year 1, Marshall had used 60% of the supplies purchased. In June Year 1, the firm collected $160,000 from its first client while performing $180,000 of work for this client. The remainder will be collected in Year 2. During August Year 1, Marshall started work for its second client. The firm completed $200,000 of work for this new client in Year 1. By the end of Year 1, this client had paid Marshall $230,000. The excess is for work Marshall will perform in Year 2. Marshall hired five consultants at a monthly salary of $4,000 each. These five consultants worked for the firm from April 10, Year 1, through December 31, Year 1. The firm pays its employees on the 20th of each month for services rendered during that month. The first payday on April 20th will be for 1/3 of one month. During Year 1, the firm used up utilities with a value of $5,200. In Year 1, the firm paid for 80% of all utilities consumed and had to pay a $300 deposit with the utility company. The firm rented and moved into an office space on May 31, Year 1, at a monthly cost of $3,000. The two-year contract with the landlord required that the rent be paid on November 30 and May 31 for the six-month periods ending on those dates. The first payment was made as required on November 30, Year 1. All payments have or will be made as agreed. Required: Determine the proper Cash account balance at December 31, Year 1. Calculations not required