Mr. Montana started a company (Montana Company) by contributing $100,000 cash, and a building valued at $800,000. The company then purchased a machine by making a $100,000 down payment (which accounted for half its purchase price) , and signed a note payable to the bank.
After recording the above transactions, Montana Company's balance sheet will show:
Assets Liabilities Stockholders' Equity
A) $ 920,000 $ 60,000 $860,000
B) $ 900,000 $100,000 $800,000
C) $1,000,000 $900,000 $100,000
D) $1,000,000 $100,000 $900,000
Correct Answer:
Verified
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