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

question 44

Multiple Choice

The following transactions occurred during May, the first month of operations for Hunter Products Limited:
* Issued 50,000 shares of share capital 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 Limited for $63,000.

-Refer to the above data. 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:

Limitation Periods

Statutorily established time frames within which a legal action must be brought, after which rights to assert claims could be lost.

Government Bodies

Organizations or agencies established by a government to perform specific tasks or functions on its behalf.

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A fundamental document in Canada that protects individual rights and freedoms from the actions and policies of all levels of government and establishes the framework for the interpretation of laws.

Reasonable Apprehension

A perception or fear of bias or prejudice that appears fair or sensible to an unbiased observer.