The following transactions occurred during March, the first month of operations for Canyon Products, Inc.: 1.Issued 50,000 shares of capital stock in exchange for $600,000 cash
2)Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance.
3)Made a $60,000 cash payment on the note payable from the purchase of land.
4)Purchased equipment on credit from Burton, Inc.for $63,000.
What is the balance in the Cash account at the end of March?
A) $810,000
B) $210,000
C) $600,000
D) $390,000

Question

Quizplus · Accepted Answer

The only cash transactions were the issuance of capital stock for $600,000 and the payment of $60,000 on the note payable. Therefore, the total cash balance at the end of March is $600,000 - $60,000 = $540,000. The purchase of land and equipment were not cash transactions.

The Following Transactions Occurred During March, the First Month of Operations