Computation of assets, liablities and owners\' equitys after a series of transac

Question

Computation of assets, liablities and owners' equitys after a series of transactions

On April 30, 2014 the balance sheet of China Collectibles showed total assets fo $700,000, total liablitlies of $400,000 and owners equity of $300,000.   the followign transactions occurred in May of 2014:

(1) Capital stock was issued in exchange for $165,000 cash

(2) The buisness purchased equipment ofr $360,000, paying $160,000 cash adn issuing a note payable for $200,000.

(3) The business paid $70,000 of iits accounts payable

(4) The business collected $54,000 of its accounts recievable.

Comput the follwoing as of May 31, 2014:

(A) Total Assets $____________

(b) Total Liabilaities $___________________

(c) owners equity $________________

Explanation / Answer

Particulars Total Assets Total Liabilaities owners equity Balance on April 30, 2014 $700,000 $400,000 $300,000 Capital stock issued $165,000 - $165,000 purchased equipment $360,000 - - Payment for equipment ($160,000) $200,000 - Payment of accounts payable ($70,000) ($70,000) - Collection from accounts recievable - - - Balance as on May 31, 2014 $995,000 $530,000 $465,000

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