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 $100,000 from a group of investors and received a $84,000 loan from the bank. Bought $8,505 of merchandise, $3,760 for cash and $4,745 on account. Bought equipment costing $10,800, paying the manufacturer $5,800 in cash and promising to pay the remaining $5,000 next month. Sold merchandise for $21,990, of which $17,802 was for cash and $4,188 was on account; cost of the merchandise was $10,995. Paid $3,728 to suppliers for merchandise previously bought on account. Collected $2,860 from customers on account. Paid wages of $5,940. Paid a total of $540 for rent and insurance in advance. Recorded depreciation of $1,850. Recorded a total of $109 for rent and insurance that had expired. 5. What were total equities on September 30?

Explanation / Answer

Sales Revenue            21,990 Cost Of mechadise            10,995 paid Wages              5,940 Paid Rent & Insurance                 109 Depriciation              1,850 Profit tarnsferres to reatined earning              3,096 Opening Equity          100,000 Retained Earning              3,096 Total Equity at end          103,096

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