Question

The following transactions occurred during March, the first month of operations for Quality Galleries, Inc.

* Capital stock was issued in exchange for $360,000 cash.
* Purchased $180,000 of equipment by making a $60,000 cash down payment and signing a note payable for the balance.
* Made a $35,000 cash payment on the note payable from the purchase of equipment.
* Sold a piece of equipment for cash of $18,000. The equipment was sold at cost, so there is no gain or loss on the sale.

references
What is the balance in the Cash account at the end of March?
$343,000.
$318,000.
$283,000.
$378,000.

Answer 1

Answer: $283,000

Explanation: Quality Galleries, Inc has the under listed cash transactions in the month of March:

Capital stock exchange for cash = $360,000

Less: Cash payment for stock = $60,000

Less: cash payment on note payable = $35,000

Add: cash from the sales of an equipment = $18,000

balance at the end of the month of March in the cash account is $283,000