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

question 153

Multiple Choice

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

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Definitions:

Government Spending

All expenditures made by government agencies on goods, services, and projects to achieve economic and social goals.

Tax Revenue

The revenue collected by governments from taxes, which finances public services and government commitments.

Treasury Bonds

Treasury bonds are long-term government debt securities issued by the Department of the Treasury with a maturity of more than ten years.

Federal Budget

The government's estimate of revenue and expenditure for a forthcoming fiscal year.