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The following transactions occurred during May,the first month of operations for Hunter Products,Inc.:
* Issued 50,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash.
* Purchased a piece of land for $400,000,making a $150,000 cash down payment and signing a note payable for the balance.
* Made a $60,000 cash payment on the note payable from the purchase of land.
* Purchased equipment on credit from BBW,Inc.for $63,000.
-What is the balance in the Cash account at the end of May?
A)$210,000
B)$390,000
C)$600,000
D)$810,000

Question

Quizplus · Accepted Answer

The cash account balance can be calculated as follows:
- Initial cash balance: $0
- Cash received from issuing capital stock: $600,000
- Cash paid for land: ($150,000)
- Cash paid on note payable: ($60,000)
- Cash paid for equipment: ($0, since it was purchased on credit)
- Ending cash balance: $390,000

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