Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below] The following transactions occurred during May, the first month of operations for Hunter Products, Indc: 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 88W, Inc. for $67000. What are total assets of Hunter Products at the end of May? Multiple Choice $985,00O $854,000. $921,000 $988.000

Explanation / Answer

Calculation of total assets at the end of May:

a. Cash received on issuance of common stock = $648,000

Add: Value of land puchased = $440,000

Less: cash paid to purchase land ($170,000 + $64,000) = ($234,000)

Add:value of equipment purchased = $67,000

Total asset at the end of may = $921,000

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