X Company is a merchandiser and prepares monthly financial statements. The follo

Question

X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January Balance Sheet anuary 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets Equities $52,669 Accounts Payable 32,826 Wages Payable 78,694 Notes Payable 6,239 Paid-In Capital 213,115 Retained Earnings $53,009 1,040 31,287 227,289 70,918 $383,543 $383,543 Total Equities The following summary transactions occurred during January: 1. Sold stock to investors for $45,000 2. Borrowed $26,000 from a bank. 3. Bought merchandise from suppliers, paying $3,280 and promising to pay $5,161 next month. 4. Bought equipment from a manufacturer, paying $31,800 and promising to pay $4,100 in three months 5. Paid $3,315 to merchandise suppliers that it had promised to pay 6. Sold merchandise, receiving $17,445 cash and promises to pay of $4,935; the merchandise that was sold previously cost $11,190 7. Paid a total of $543 for rent and insurance in advance 8. Received $3,570 from customers who had promised to pay 9. Paid $5,670 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries 4. What was the cash balance on January 31? $100,076 You are correct. Your receipt no. is 152-7531 5. What wre total equities on January 31? Submit Answer Tries 0/3 6. What was net income in January? Submit Answer Incorrect. Tries 1/3 Previous Tries

Explanation / Answer

4)cash balance on january 31 is $100076 5)total Equities on january 31 is $343207 6) net income for january 31 is $5520 Cash balance Equity balance Net Income Opening balances $                          52,669.00 $                                                    2,98,207.00 1.Sale of common stock for $45000 $                          45,000.00 $                                                        45,000.00 2 Borrwed from bank $26000 $                          26,000.00 3 Purchasing Merchandise $3280 $                          -3,280.00 4 part payment for Purchase of Equipment $31800 $                        -31,800.00 5 Payment of merchanise (pending) $3315 $                          -3,315.00 6 Sale of Merchasie for cash $17445 $                          17,445.00 $   17,445.00 Sale of merchandise for credit$4935 $     4,935.00 Cost of sale of Merchandise $11190 $ -11,190.00 7 Payemtn of rent & insurance in advance $543 $                              -543.00 8 Receipts from credit sales $3570 $                            3,570.00 9 Payment for wages, utilities, and other Misc expenses $5670 $                          -5,670.00 $   -5,670.00 Net income $                                                          5,520.00 Closing balances on jan 31 $                      1,00,076.00 $                                                    3,43,207.00 $     5,520.00

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