The following transactions occurred during May, the first month of operations fo
ID: 2399888 • Letter: T
Question
The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 54,000 shares of capital stock to the owners of the corporation in exchange for $648,000 cash. * Purchased a piece of land for $440,000, making a $170,000 cash down payment and signing a note payable for the balance. * Made a $64,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $67,000.
What is the balance in the Cash account at the end of May?
Explanation / Answer
Calculation of balance of cash account:
Issuance of capital stock to the owners of the corporation = 648000
Cash down payment for purchase a piece of lane = (170000)
Cash payment on the note payable from the purchase of land = (64000)
Balance in the Cash account at the end of May = 414000
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