The following balance sheet is for X Company: Balance Sheet January 1, 2015 Asse
ID: 2596651 • Letter: T
Question
The following balance sheet is for X Company:
Balance Sheet
January 1, 2015
Assets
Equities
Cash
$52,726
Accounts Payable
$244,535
Accounts Receivable
13,657
Wages Payable
1,498
Inventory
156,628
Notes Payable
33,019
Prepaid Rent
5,540
Paid-In Capital
191,605
Equipment
311,493
Retained Earnings
69,387
Total Assets
$540,044
Total Equities
$540,044
The following summary transactions occurred during 2015:
borrowed $4,601 from the bank
paid $83,688 to suppliers for merchandise purchased on account
paid for $50,850 of advertising
purchased $256,080 of merchandise on account and $209,520 for cash
sold merchandise for $514,504 on account and $190,296 for cash; the merchandise cost $387,640
signed a four-year rental lease for $8,000; paid for one year in advance
paid $5,000 for land and equipment
received $235,976 from customers for merchandise sold on account
received $8,809 in cash contributions from new owners
4. What were total equities on December 31, 2015?
Please show work!
Balance Sheet
January 1, 2015
Explanation / Answer
Income Statement Sales: Cash 190296 Credit 514504 704800 Ending Inventory 156628+256080+209520-387640 234588 939388 Less: Beginning Inventory 156628 Purchases 465600 Gross Profit 317160 Less: Expenses Advertising expenses 50850 Rent 8000/4 2000 Net Income 264310 Total Equities: Paid in Capital 191605 Add: Retained Earnings 69387 Net Income 264310 Total Equities 525302
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