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 anuary 1 Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets 53,537 Accounts Payable 30,409 Wages Payable 75,776 Notes Payable 5,634 Paid-In Capital 223,914 Retained Earnings $60,706 1,114 30,514 226,282 70,654 $389,270 $389,270 Total Equities The following summary transactions occurred during January: 1. Sold stock to investors for $43,000 2. Borrowed $28,000 from a bank. 3. Bought merchandise from suppliers, paying $3,078 and promising to pay $5,457 next month. 4. Bought equipment from a manufacturer, paying $39,400 and promising to pay $4,500 in three months. 5. Paid $3,464 to merchandise suppliers that it had promised to pay. 6. Sold merchandise, recelving $15,847 cash and promises to pay of $4,273; the merchandise that was sold previously cost $10,060 7. Paid a total of $570 for rent and insurance in advance. 8. Received $3,102 from customers who had promised to pay. 9. Paid $5,420 for wages, utilties, and other miscellaneous expenses, Note: Ignore adjusting entries. 4. What was the cash balance on January 31? 91,554 are correct. Your receipt no. is 152-5217 5. What were total equities on January 31? 472003 Tries 2/3 Previous Tries 6. What was net income in January? 4,640 are correct. Your receipt no. is 152-1486

Explanation / Answer

Requirement 5: Total Equities: Paid in capital 226282 Retained Earnings 70654 Net Income 4640 301576

Related Questions

Navigate

• Browse (All)
• Browse X
• Subjects

---

---

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