Question

A company had the following transactions during September, the first month of its operations:

• Issued 50,000 shares of common stock in exchange for $600,000.
• Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance.
• Received $5,000 from a customer for services to be performed in December
• Made a $60,000 payment on the note payable from the purchase of the land.
• Total monthly sales: Cash sales $50,000 Credit Sales: $17,000
• Purchased equipment on credit for $63,000.
• Collected $8,000 from customers on account.
• Paid $2,000 for September employee wages.
• Received a utility bill for $500 which will be paid next month.
What is the balance in the Cash account at the end of September?
A. $451,000
B. $468,000
C. $461,500
D. $405,000
E. $445,000

Answer 1

A. $451,000

Step-by-step explanation:

Particular Amount

Issue of common stock $600,000

Receipt from customer $5,000

Cash sales $50,000

Collection from customers $8,000

Less:

Cash down payment made ($150,000)

Payment made on notes payable ($60,000)

Employee wages paid ($2,000)

Cash balance at on end of September $451,000