I need help with 5 and 6 please. X Company was created on September 1 and prepar

Question

I need help with 5 and 6 please.

X Company was created on September 1 and prepares monthly financial statements. During September, the company had the following transactions:

Received $100,000 from a group of investors and received a $87,000 loan from the bank.

Bought $8,379 of merchandise, $3,389 for cash and $4,990 on account.

Bought equipment costing $10,300, paying the manufacturer $5,600 in cash and promising to pay the remaining $4,700 next month.

Sold merchandise for $20,820, of which $16,648 was for cash and $4,172 was on account; cost of the merchandise was $10,410.

Paid $3,423 to suppliers for merchandise previously bought on account.

Collected $2,505 from customers on account.

Paid wages of $5,300.

Paid a total of $524 for rent and insurance in advance.

Recorded depreciation of $1,550.

Recorded a total of $107 for rent and insurance that had expired.

5. What were total equities on September 30?

6. What was Net Income in September?

Explanation / Answer

Sales 20820 discount received(4990-3423) 1567 Less:COGS 10410 wages 5300 discount allowed(4172-2505) 1667 depreciation 1550 rent 107 net income 3353 capital 100000 net income 3353 = 103353 is equity

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