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 January 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets Equities $52,109 Accounts Payable 30,782 Wages Payable 83,475 Notes Payable 5,994 Paid-In Capital 217,498 Retained Earnings $64,420 1,288 30,994 227,413 65,743 $389,858 $389,858 Total Equities The following summary transactions occurred during January 1. Sold stock to investors for $50,000 2. Borrowed $22,000 from a bank. 3. Bought merchandise from suppliers, paying $3,447 and promising to pay $4,576 next month 4. Bought equipment from a manufacturer, paying $35,200 and promising to pay $4,500 in three months 5. Paid $3,280 to merchandise suppliers that it had promised to pay 6. Sold merchandise, receiving $16,367 cash and promises to pay of $4,063; the merchandise that was sold previously cost $10,215 7. Paid a total of $515 for rent and insurance in advance 8. Received $2,332 from customers who had promised to pay. 9. Paid $5,900 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? $94,466 You are correct. Your receipt no. is 152-3163 Previous Tries 5. What were total equities on January 31? 462126 Submit Answer Incorrect. Tries 2/3 Previous Tries 6. What was net income in January? Submit Answer Tries 0/3

Explanation / Answer

Solution:-

4. Cash balance on january 31:-

$94,466

Explanation:- 52,109 + 50,000 + 22,000 - 3,447 - 35,200 - 3,280 + 16,367 - 515 + 2,332 - 5,900 = $ 94,466..

5. What were total equities on january 31:-

$471,969

Explanation:

389,858 + 50,000 + 22,000 + 4,576 + 4,500 - 3,280 + 4,315 = $ 471,969

6. What was net income in January:-

$4,315

Explanation:- (16,367 + 4,063 - 10,215) - 5,900 = $ 4,315.

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