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

4)cash balance on january 31 is $93310 5)total Equities on january 31 is $372,723 6) net income for january 31 is $5590 Cash balance Equity balance Net Income Opening balances $                          50,921.00 $                                                    3,24,723.00 1.Sale of common stock for $48000 $                          48,000.00 $                                                        48,000.00 2 Borrwed from bank $25000 $                          25,000.00 3 Purchasing Merchandise $3764 $                          -3,764.00 4 part payment for Purchase of Equipment $38000 $                        -38,000.00 5 Payment of merchanise (pending) $3783 $                          -3,783.00 6 Sale of Merchasie for cash $17320 $                          17,320.00 $   17,320.00 Sale of merchandise for credit$4740 $     4,740.00 Cost of sale of Merchandise $11030 $ -11,030.00 7 Payemtn of rent & insurance in advance $579 $                              -579.00 8 Receipts from credit sales $3635 $                            3,635.00 9 Payment for wages, utilities, and other Misc expenses $5440 $                          -5,440.00 $   -5,440.00 Net income $                                                          5,590.00 Closing balances on jan 31 $                          93,310.00 $                                                    3,72,723.00 $     5,590.00

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