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

ID: 2483965 • Letter: X

Question

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

Received $87,000 from a group of investors and received a $98,000 loan from the bank.

Bought $8,672 of merchandise, $3,992 for cash and $4,680 on account.

Bought equipment costing $9,700, paying the manufacturer $5,200 in cash and promising to pay the remaining $4,500 next month.

Sold merchandise for $21,570, of which $17,490 was for cash and $4,080 was on account; cost of the merchandise was $10,785.

Paid $3,419 to suppliers for merchandise previously bought on account.

Collected $2,940 from customers on account.

Paid wages of $5,460.

Paid a total of $588 for rent and insurance in advance.

Recorded depreciation of $1,900.

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?

5) Total equity=87000+3498=90498

6) NEt income = 21750-10785-5460-1900-107=3498

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