The following transactions occurred during March, the first month of operations

Question

The following transactions occurred during March, the first month of operations for Quality Galleries, Inc.
* Capital stock was issued in exchange for $360,000 cash.
* Purchased $180,000 of equipment by making a $60,000 cash down payment and signing a note payable for the balance.
* Made a $35,000 cash payment on the note payable from the purchase of equipment.
* Sold a piece of equipment for cash of $18,000. The equipment was sold at cost, so there is no gain or loss on the sale.

Explanation / Answer

What is the balance in the Note Payable account at the end of March?

$85,000

Refer to the above data. What is the total owners' equity at the end of March?

$360,000.

$360,000: capital stock issued

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