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:

1. Received $87,000 from a group of investors and received a $92,000 loan from the bank.

2. Bought $8,951 of merchandise, $3,009 for cash and $5,942 on account.

3. Bought equipment costing $10,000, paying the manufacturer $5,500 in cash and promising to pay the remaining $4,500 next month.

4. Sold merchandise for $22,360, of which $17,702 was for cash and $4,658 was on account; cost of the merchandise was $11,180.

5. Paid $3,904 to suppliers for merchandise previously bought on account.

6. Collected $2,839 from customers on account.

7. Paid wages of $5,500.

8. Paid a total of $523 for rent and insurance in advance.

9. Recorded depreciation of $1,650.

10. Recorded a total of $108 for rent and insurance that had expired.

What were total equities on September 30? __________

Explanation / Answer

Sales Revenue 22360 Cost Of mechadise 11180 paid Wages 5500 Paid Rent & Insurance 108 Depriciation 1650 Profit tarnsferres to reatined earning 3922 Opening Equity 87000 Retained Earning 3922 Total Equity at end 90922

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