X Company was created on September 1 and prepares monthly financial statements.
ID: 2483697 • Letter: X
Question
X Company was created on September 1 and prepares monthly financial statements. During September, the company had the following transactions:
Received $93,000 from a group of investors and received a $97,000 loan from the bank.
Bought $8,540 of merchandise, $3,069 for cash and $5,471 on account.
Bought equipment costing $10,600, paying the manufacturer $5,600 in cash and promising to pay the remaining $5,000 next month.
Sold merchandise for $21,960, of which $17,808 was for cash and $4,152 was on account; cost of the merchandise was $10,980.
Paid $3,267 to suppliers for merchandise previously bought on account.
Collected $2,871 from customers on account.
Paid wages of $5,720.
Paid a total of $537 for rent and insurance in advance.
Recorded depreciation of $1,800.
Recorded a total of $114 for rent and insurance that had expired.
5. What were total equities on September 30?
6. What was Net Income in September?
Explanation / Answer
5 total equities on september 30 is $93000+5786 = .$98786
6.
Income statement
sale 21960
purchase -8540
wages -5720
rent -114
depriciation -1800
net income 5786
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