X Company is a merchandiser and prepares monthly financial statements. The follo

Question

X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January Balance Sheet January1 Equities Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets $52,160 1,488 33,534 265,682 60,447 $413,311 $52,962Accounts Payable 33,426 Wages Payable 76,673 Notes Payable 5,320 Paid-In Capital 244,930 Retained Earnings $413,311 Total Equities The following summary transactions occurred during January 1. Sold stock to investors for $40,000 2. Borrowed $28,000 from a bank. 3. Bought merchandise from suppliers, paying $3,548 and promising to pay $4,622 next month. 4. Bought equipment from a manufacturer, paying $31,100 and promising to pay $4,700 in three months. 5. Paid $3,139 to merchandise suppliers that it had promised to pay 6. Sold merchandise, receiving $16,280 cash and promises to pay of $4,930; the merchandise that was sold previously cost $10,605 7. Paid a total of $539 for rent and insurance in advance. 8. Received $3,654 from customers who had promised to pay 9. Paid $5,460 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? Submit Answer Tries 0/3 5. What were total equities on January 31? Submit Answer Tries 0/3 6. What was net income in January? Submit Answer Tries 0/3

Explanation / Answer

Cash balance Equity balance Net Income Opening balances $                                52,962 $                                                          3,26,129 1.Sale of common stock for $40,000 $                                40,000 $                                                              40,000 2 Borrwed from bank $28000 $                                28,000 3 Purchasing Merchandise $3548 $                                -3,548 4 part payment for Purchase of Equipment $31100 $                              -31,100 5 Payment of merchanise (pending) $3139 $                                -3,139 6 Sale of Merchasie for cash $16280 $                                16,280 $         16,280 Sale of merchandise for credit$4930 $           4,930 Cost of sale of Merchandise $       -10,605 7 Payemtn of rent & insurance in advance $539 $                                    -539 8 Receipts from credit sales $3654 $                                  3,654 9 Payment for wages, utilities, and other Misc expenses $                                    -5460 $             -5460 Net income $ 5,145 Closing balances on jan 31 $ 97,110 $                                                          3,61,129 $ 5,145 4) what is the cash balance on jan 31 Cash balance on jan 31 is $97110 5) what were the total Equities on jan31 Total Equity on Jan 31 is $361129 6) What was the net income jan31 Net Inocme for january is $5145

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