Questions 4, 5, and 6 refer to the following information X Company is a merchand

Question

Questions 4, 5, and 6 refer to the following information 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 $50,178 Accounts Payable 32,047 Wages Payable 83,840 Notes Payable 6,294 Paid-In Capital 241,321 Retained Earnings $64,935 1,223 34,714 244,045 68,763 $413,680 $413,680 Total Equities The following summary transactions occurred during January 1. Sold stock to investors for $42,000 2. Borrowed $22,000 from a bank. 3. Bought merchandise from suppliers, paying $3,781 and promising to pay $4,577 next month 4. Bought equipment from a manufacturer, paying $31,000 and promising to pay $4,700 in three months. 5. Paid $2,911 to merchandise suppliers that it had promised to pay. 6. Sold merchandise, receiving $15,942 cash and promises to pay of $4,858; the merchandise that was sold previously cost $10,400 7. Paid a total of $572 for rent and insurance in advance 8. Received $3,371 from customers who had promised to pay 9. Paid $5,070 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 Anwer Tries 0/3 6. What was net income in January? Submit Answer Tries 0/3

Explanation / Answer

4.

5.

6.

Cash balance 90157

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