X Company was formed on July 1, 2014, and had the following transactions during

ID: 2501446 • Letter: X

Question

X Company was formed on July 1, 2014, and had the following transactions during the rest of 2014:

received $8,679 in cash contributions from the owners

purchased $8,831 worth of merchandise, all on account

sold merchandise that cost $8,149 for $11,642, all on account

paid $3,307 to suppliers for merchandise purchased on account

received $3,463 from customers for merchandise sold on account

paid $5,969 for land and equipment

borrowed cash from the bank in the amount of $4,276

What were total assets on December 31, 2014 (ignore depreciation on the equipment and interest on the loan)?

Assets:

Cash (db) 8679

common equity(cr) 8679

merchandise(db) 8831

account paable (cr) 8831

revenue (cr) 11642

accout receivable (db) 11642

merchandise (cr) 8149

cost of goods sold(db) 8149

cash (cr) 3307

account paable (db) 3307

cash(db) 3643

account reciable (cr) 3643

cash (cr)5969

land and equipment (db) 5969

cash (db) 4276

bank payabl (cr) 4276

Total Assets:

cash: 8679-3307-5969+4276= $3,679

merchandse:8831-8149=$682

account recevable:11642-3463=$8179

land and equipment:5969

Total assets=$18,509

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