Questions, , an b rerer to tne tollowing inormation X Company is a merchandiser
ID: 2598072 • Letter: Q
Question
Questions, , an b rerer to tne tollowing inormation X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January: Balance Sheet January 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets Equities $50,420 Accounts Payable 0,053 Wages Payable 78,451 Notes Payable 6,267 Paid-In Capital 228,906 Retained Earnings $56,461 1,176 33,802 229,815 72,843 $394,097 Total Equities $394,097 The following summary transactions occurred during January: 1. Sold stock to investors for $49,000. 2. Borrowed $28,000 from a bank. 3. Bought merchandise from suppliers, paying $3,173 and promising to pay $5,002 next month. 4. Bought equipment from a manufacturer, paying $32,400 and promising to pay $4,900 in three months. 5. Paid $3,093 to merchandise suppliers that it had promised to pay. 6. Sold merchandise, receiving $16,475 cash and promises to pay of $4,875; the merchandise that was sold previously cost $10,675 7. Paid a total of $549 for rent and insurance in advance. 8. Received $3,810 from customers who had promised to pay 9. Paid $5,000 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? Suemt Ar Tries o/3 S. What were total equities on January 31? Submit Answer Tries 0/3 6. What was net income in January? Submit Anseer Tries 0/3Explanation / Answer
Answer 4. Cash balance = 50420+49000+28000-3173-32400-3093+16475-549+3810-5000= $103490
Answer 5: 349097+28000+5002+4900-3093+549= $429455
ANSWER 6: 16475-10675-5000= $800
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