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 $362,000 cash. * Purchased $184,000 of equipment by making a $62,000 cash down payment and signing a note payable for the balance. * Made a $36,000 cash payment on the note payable from the purchase of equipment. * Sold a piece of equipment for cash of $20,000. The equipment was sold at cost, so there is no gain or loss on the sale. 1. Required information What is the balance in the Cash account at the end of March? $284,000. $346,000. $320,000. $382,000. 2. Required information What are total assets of Quality Galleries at the end of March? $284,000. $164,000. $448,000. $484,000. 3. Required information What is the balance in the Note Payable account at the end of March? $122,000. $86,000. $36,000. $158,000 4. Required information What is the total owners' equity at the end of March? $284,000. $448,000. $484,000. $362,000.

Explanation / Answer

1 cash balance 284000 362000-62000-36000+20000 2 total assets 164000 184000-20000 3 notes payable 86000 184000-62000-36000 4 owners equity 362000

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