X Company was created on September 1 and prepares monthly financial statements.
ID: 2484636 • Letter: X
Question
X Company was created on September 1 and prepares monthly financial statements. During September, the company had the following transactions:
1. Received $84,000 from a group of investors and received a $90,000 loan from the bank.
2. Bought $8,234 of merchandise, $3,683 for cash and $4,551 on account.
3. Bought equipment costing $10,200, paying the manufacturer $5,800 in cash and promising to pay the remaining $4,400 next month.
4. Sold merchandise for $21,800, of which $17,227 was for cash and $4,573 was on account; cost of the merchandise was $10,900.
5. Paid $3,233 to suppliers for merchandise previously bought on account.
6. Collected $2,699 from customers on account.
7. Paid wages of $5,130.
8. Paid a total of $564 for rent and insurance in advance.
9. Recorded depreciation of $1,600.
10. Recorded a total of $117 for rent and insurance that had expired.
Question: What were total equities on September 30?
Explanation / Answer
Sales Revenue 21,800 Cost Of mechadise 10,900 paid Wages 5,130 Paid Rent & Insurance 117 Depriciation 1,600 Profit tarnsferres to reatined earning 4,053 Opening Equity 84,000 Retained Earning 4,053 Total Equity at end 88,053
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