Required information [The folowing information applies to the questions displaye

Question

Required information [The folowing information applies to the questions displayed below] The following transactions occurred during May, the first month of operations for Hunter Products, Inc: Issued 58,000 shares of capital stock to the owners of the corporation in exchange for $696,000 cash. Purchased a piece of land for $480,000, making a $190,000 cash down payment and signing a note payable for the balance Made a $68,000 cash payment on the note payable from the purchase of land Purchased equipment on credit from BBW, Inc. for $71,000. What is the total of Hunter Products' liabilities at the end of May? Multiple Choice $293,000 $71000 $361000 $222.000 Prey

Explanation / Answer

Calculation of liabilities at the end of May:

A) Notes payable for purchase of piece of land = (480000 - 190000) = 290000

B) Payment of notes payable = 68000

C) Purchase of equipment on credit = 71000

Balance of liabililities (A -B + C) = 293000

Answer is $293000

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