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. What are total assets of Quality Galleries at the end of March

Answer 1

Answer:

$445,000

Explanation:

Calculation for the total assets of Quality Galleries at the end of March

First step is to find the balance in the Cash account at the end of March

Cash account balance =$360,000 - $60,000 - $35,000 + $18,000

Cash account balance = $283,000

Now that we have know the Cash account balance the Second step is to calculate for total assets at the end of March

Total assets = $283,000+ $180,000 - $18,000

Total assets = $445,000

Therefore the total assets of Quality Galleries at the end of March will be $445,000