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

ID: 2484636 • 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 $84,000 from a group of investors and received a $90,000 loan from the bank.

2. Bought $8,234 of merchandise, $3,683 for cash and $4,551 on account.

3. Bought equipment costing $10,200, paying the manufacturer $5,800 in cash and promising to pay the remaining $4,400 next month.

4. Sold merchandise for $21,800, of which $17,227 was for cash and $4,573 was on account; cost of the merchandise was $10,900.

5. Paid $3,233 to suppliers for merchandise previously bought on account.

6. Collected $2,699 from customers on account.

7. Paid wages of $5,130.

8. Paid a total of $564 for rent and insurance in advance.

9. Recorded depreciation of $1,600.

10. Recorded a total of $117 for rent and insurance that had expired.

Question: What were total equities on September 30?

Explanation / Answer

Sales Revenue                   21,800 Cost Of mechadise                   10,900 paid Wages                     5,130 Paid Rent & Insurance                        117 Depriciation                     1,600 Profit tarnsferres to reatined earning                     4,053 Opening Equity                   84,000 Retained Earning                     4,053 Total Equity at end                   88,053