https://s2.lte.msu 19.problem#3 Search X Company is a merchandiser and prepares
ID: 2598407 • Letter: H
Question
https://s2.lte.msu 19.problem#3 Search X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January: Balance Sheet January 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets Equities $50,420 Accounts Payable 30,053 Wages Payable 78,451 Notes Payable 6,267 Paid-In Capital 228,906 Retained Earnings $56,461 1,176 33,802 229,815 72,843 $394,097 $394,097 Total Equities The following summary transactions occurred during January: 1. Sold stock to investors for $49,000 2. Borrowed $28,000 from a bank. 3. Bought merchandise from suppliers, paying $3,173 and promising to pay $5,002 next month. 4. Bought equipment from a manufacturer, paying $32,400 and promising to pay $4,900 in three months 5. Paid $3,093 to merchandise suppliers that it had promised to pay. 6. Sold merchandise, receiving $16,475 cash and promises to pay of $4,875; the merchandise that was sold previously cost $10,675 7. Paid a total of $549 for rent and insurance in advance. 8. Received $3,810 from customers who had promised to pay 9. Paid $5,000 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? $103,490 You are correct. Your receipt no. is 152-7552 Previous Tries S. What were total equities on January 31? 429455 Submit Answer Tries 1/3 Previous Tries 6. What was net income in January? Submit Arswer Tries 0/3Explanation / Answer
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Therefore Net Income for January is 67850/-
Cash Account To Balance b/d 50420 By Payment to merchandise 3173 To Bank Loan 28000 By Machinery 32400 To Sold to merchandise 16475 By Payment to merchandise 3093 To Received from customer 3810 By Prepaid Rent & Insurance 549 To Sold stock to investors 49000 By Wages, Utilities & Miscellaneous 5000 By Cash balance 31 january 103490 147705 147705Related Questions
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