Computation of Assets,liabilities,and Owners' Equity After a Series of Transactions

Essay

Computation of assets,liabilities,and owners' equity after a series of transactions
On April 30,2018,the balance sheet of China Collectibles showed total assets of $700,000,total liabilities of $400,000,and owners' equity of $300,000.The following transactions occurred in May of 2018:
(1)Capital stock was issued in exchange for $165,000 cash.
(2)The business purchased equipment for $360,000,paying $160,000 cash and issuing a note payable for $200,000.
(3)The business paid $70,000 of its accounts payable.
(4)The business collected $54,000 of its accounts receivable.
Compute the following as of May 31,2018:
(A. )Total assets
(B. )Total liabilities
(C. )Owners' equity