X Company was created on September 1 and prepares monthly financial statements.

Question

X Company was created on September 1 and prepares monthly financial statements. During September, the company had the following transactions: Received dollar 99,000 from a group of investors and received a dollar 91,000 loan from the bank. Bought dollar 8,710 of merchandise, dollar 3,054 for cash and dollar 5,656 on account. Bought equipment costing dollar 10,900, paying the manufacturer dollar 5,900 in cash and promising to pay the remaining dollar 5,000 next month. Sold merchandise for dollar 22,150, of which dollar 17,467 was for cash and dollar 4,683 was on account; cost of the merchandise was dollar 11,075. Paid dollar 3,410 to suppliers for merchandise previously bought on account. Collected dollar 2,869 from customers on account. Paid wages of dollar 5,250. Paid a total of dollar 519 for rent and insurance in advance. Recorded depreciation of dollar 1,850. Recorded a total of dollar 117 for rent and insurance that had expired. What were total equities on September 30?

Explanation / Answer

Sales 22150 discount received(5656-3410) 2246 Less:COGS 11075 wages 5250 discount allowed(4683-2869) 1814 depreciation 1850 rent -402 net income 4809 capital 99000 net income 4809 equity 103809

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