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 $93,000 from a group of investors and received a $80,000 loan from the bank.

2. Bought $8,913 of merchandise, $3,011 for cash and $5,902 on account.

3. Bought equipment costing $9,700, paying the manufacturer $5,700 in cash and promising to pay the remaining $4,000 next month.

4. Sold merchandise for $20,890, of which $15,997 was for cash and $4,893 was on account; cost of the merchandise was $10,445.

5. Paid $3,188 to suppliers for merchandise previously bought on account.

6. Collected $2,897 from customers on account.

7. Paid wages of $5,560.

8. Paid a total of $592 for rent and insurance in advance.

9. Recorded depreciation of $1,700.

10. Recorded a total of $122 for rent and insurance that had expired.

Question 1. What were total equities on September 30?

Please give me exact answer for number 1 and 2 help!

Explanation / Answer

Question 1. What were total equities on September 30?

Computation of Total equities:

note-1: Calculation of surplus:

Details Amount Received Investment to start business (i.e, Capital from a group of investors) $93,000 Add: surplus (note-1) $3,063 Total equities on September 30 $96,063

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