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 Equities Assets Cash Accounts Receivable 50,921 Accounts Payable 32,429 Wages Payable 84,561 Notes Payable 5,738 Paid-In Capital 237,623 Retained Eanings 54,131 1,188 31,230 256,957 67,766 $411,272 Prepaid Rent Total Assets $411,272 Total Equities The following summary transactions occurred during January: 1. Sold stock to investors for $48,000 2. Borrowed $25,000 from a bank 3. Bought merchandise from suppliers, paying $3,764 and promising to pay $5,198 next month Bought equipment from a manufacturer, payling $38,000 and promising to pay $4,900 in three months 5. Paid $3,783 to merchandise suppliers that it had promised to pay 6. Sold merchandise, receliving $17,320 cash and promises to pay of $4,740; the merchandise that was sold previously cost $11,030. 7. Paid a total of $579 for rent and insurance in advance. 8. Recelved $3,635 from customers who had promised to pay. 9. Paid $5,440 for wages, utilties, and other miscelaneous expenses Note: Ignore adjusting entries 4. What was the cash balance on January 31? 9268 Tries 2/3 Previous Tries . What were total equities on January 31? Subnt Are Tries 1/3 Previous Tries 6. What was net income in January? Tries o/3

Explanation / Answer

1.

2.

3. Net income in january:

Particulars Amount opening balance 50921 sold stock 48000 borrowed from bank 25000 paid suppliers -3764 paid for equipment -38000 paid suppliers -3783 cash receipt on sales 17320 paid rent -579 receipt from customers 3635 paid expenses -5440 Ending balance 93310

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.