[The Following Information Applies to the Questions Displayed Below

question 125

Multiple Choice

[The following information applies to the questions displayed below.]
The following transactions occurred during May,the first month of operations for Hunter Products,Inc.:
* Issued 50,000 shares of capital stock to the owners of the corporation in exchange for $600,000 cash.
* Purchased a piece of land for $400,000,making a $150,000 cash down payment and signing a note payable for the balance.
* Made a $60,000 cash payment on the note payable from the purchase of land.
* Purchased equipment on credit from BBW,Inc.for $63,000.
-What is the total of Hunter Products' liabilities at the end of May?

• A)$253,000
• B)$190,000
• C)$63,000
• D)$313,000

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Definitions:

Shipment Seized

An event where goods are confiscated by authorities, usually due to regulatory, customs, or legal issues.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.

Fine

A monetary penalty imposed by an authority as punishment for a breach of law or rule.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.