The business purchased equipment for 380000 paying 180000


Question - On April 30, 2013, the balance sheet of Abkan Art Gallery showed total assets of $800,000, total liabilities of $500,000, and owners' equity of $300,000. The following transactions occurred in May of 2013:

(1) Capital stock was issued in exchange for $175,000 cash.

(2) The business purchased equipment for $380,000, paying $180,000 cash and issuing a note payable for $200,000.

(3) The business paid off $80,000 of its accounts payable.

(4) The business collected $64,000 of its accounts receivable.

Compute the following as of May 31, 2013:

(A) Total assets

(B) Total liabilities

(C) Owners' equity

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Accounting Basics: The business purchased equipment for 380000 paying 180000
Reference No:- TGS02886621

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