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. $210,000
b. $390,000
c. $810,000
d. $600,000

B

Explanation:

Description                             Debit                 Credit

Share  Issues        Cash       600,000

                              Stock                                    600,000

Land purchase     Cash                                      150,000

                           Account payable                     250,000

                               Land          400,000

cash payment     Cash                                        60,000

                       Account payable  60,000

Equipment      Account payable                          63,000

                          equipment           673,000

Cash movement = 600,000 -(150,000+60,000) = 390,000