Question

The following transactions occurred during May, the first month of operations for Hunter Products, Inc: * Issued 55,000 shares of capital stock to the owners of the corporation in exchange for $660,000 cash. * Purchased a piece of land for $450,000, making a $175,000 cash down payment and signing a note payable for the balance. * Made a $65,000 cash payment on the note payable from the purchase of land. * Purchased equipment on credit from BBW, Inc. for $68,000.

Answer 1

Answer:

$420,000

Explanation:

Data provided as per the question

Issuance of capital stock = $660,000

Cash down payment = $175,000

Cash payment on the note payable = $65,000

The computation of balance of cash account is shown below:-

Cash balance = Issuance of capital stock - Cash down payment - Cash payment on the note payable

= $660,000 - $175,000 - $65,000

= $420,000