X Company is a merchandiser and prepares monthly financial statements. The follo
ID: 2599289 • Letter: X
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 Equities Assets Cash Accounts Receivable $61,786 1,111 32,016 222,882 64,184 $381,979 $52,154 Accounts Payable 34,126 Wages Payable 82,746 Notes Payable Prepaid Rent Equipment Total Assets 5,871 Paid-In Capital 207,082 Retained Earnings $381,979 Total Equities The following summary transactions occurred during January 1. Sold stock to investors for $44,000 2. Borrowed $29,000 from a bank. 3. Bought merchandise from suppliers, paying $3,670 and promising to pay $5,223 next month 4. Bought equipment from a manufacturer, paying $32,800 and promising to pay $4,900 in three months. 5. Paid $3,792 to merchandise suppliers that it had promised to pay 6. Sold merchandise, receiving $17,070 cash and promises to pay of $4,690; the merchandise that was sold previously cost $10,880 7. Paid a total of $553 for rent and insurance in advance. 8. Received $3,624 from customers who had promised to pay 9. Paid $5,870 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? $99,163 You are correct. Your receipt no. is 152-5177 5. What were total equities on January 31? Submit Answer Tries 2/3 Previous Tries 6. What was net income in January? Submit Answer Tries 0/3Explanation / Answer
CALCULATION OF CASH BALANCE AS ON 31ST JANUARY:
Opening balance of Cash
52,154
Stock Sold
44,000
Borrowings
29,000
Merchandise bought
(3,670)
Equipment bought
(32,800)
Payment to merchandise supplier
(3,792)
Merchandise sold
17,070
Rent and Insurance Payment
(553)
Received from customer
3,624
Payment for wages
(5,870)
Cash Balance as on 31st January
99,163
CALCULATION OF TOTAL EQUITIES AS ON 31ST JAN.
Total equities as on 01, January
3,81,979
Borrowings
29,000
Account payable- Merchandise Bought
5,223
Account Payable- Equipment Purchases
4,900
Less: payment to merchandise supplier
(3,792)
Total Equities as on 31, January
4,17,310
CALCULATION OF NET INCOME IN JANUARY:
Sales
44,000
Less: Purchases of Merchandise
(8,893)
Less: Wages, Utilities & Misc Exp.
(5,870)
Net Income
29,237
PLEASE RATE MY ANSWER AND COMMENT BELOW FOR ANY QUERY.
THANK YOU!!!
Opening balance of Cash
52,154
Stock Sold
44,000
Borrowings
29,000
Merchandise bought
(3,670)
Equipment bought
(32,800)
Payment to merchandise supplier
(3,792)
Merchandise sold
17,070
Rent and Insurance Payment
(553)
Received from customer
3,624
Payment for wages
(5,870)
Cash Balance as on 31st January
99,163
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