X Company was created on September 1 and prepares monthly financial statements.

ID: 2483790 • Letter: X

Question

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

1. Received $82,000 from a group of investors and received a $89,000 loan from the bank.

2. Bought $8,465 of merchandise, $3,648 for cash and $4,817 on account.

3. Bought equipment costing $9,600, paying the manufacturer $5,000 in cash and promising to pay the remaining $4,600 next month.

4. Sold merchandise for $21,690, of which $16,998 was for cash and $4,692 was on account; cost of the merchandise was $10,845.

5. Paid $3,130 to suppliers for merchandise previously bought on account.

6. Collected $2,706 from customers on account.

7. Paid wages of $5,370.

8. Paid a total of $513 for rent and insurance in advance.

9. Recorded depreciation of $1,850.

10. Recorded a total of $104 for rent and insurance that had expired.

What were total equitites on September 30th?

What is the net income in September?

Total equities :

Common stock 82000

Retained earning 3521

Total equity 85521

sales 21690 Less:cost cost of sales ] 10845 wages 5370 Rent 104 Depreciation 1850 net income 3521

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