Capital stock was issued in exchange for $363,000 cash. Purchase $186,000 of equipment by making a $63,000 cash down payment and signing a note payable for the balance. Made a $36,500 cash payment on the note payable from the purchase of equipment. Sold a piece of equipment for cash of $21,000. The equipment was sold at cost, so there is no gain or loss on the sale. What is the balance in the Note Payable account at the end of March

$86,500

Explanation:

Open a Note Payable Account. Only focus on the events that affect this Account only.

Note Payable Account

Beginning Balance                         $0

Issue of Note Payable               $123,000

Repayment of Note Payable    ($36,500)

Ending Balance                         $86,500

therefore,

the balance in the Note Payable account at the end of March is $86,500.

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