$62,115 1,099 30,566 213,717 74,180 $381,677 x Company is a merchandiser and pre
ID: 2599278 • Letter: #
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$62,115 1,099 30,566 213,717 74,180 $381,677 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 Equities Cash $52,105 Accounts Payable Accounts Receivable 34,700 Wages Payable Inventory 84,182 Notes Payable Prepaid Rent 5,515 Paid-In Capital Equipment 205,175 Retained Earnings Total Assets $381,677 Total Equities The following summary transactions occurred during January: 1. Sold stock to investors for $46,000. 2. Borrowed $22,000 from a bank. 3. Bought merchandise from suppliers, paying $3,855 and promising to pay $4,188 next month. 4. Bought equipment from a manufacturer, paying $37,400 and promising to pay $4,200 in three months. 5. Paid $2,570 to merchandise suppliers that it had promised to pay. 6. Sold merchandise, receiving $16,954 cash and promises to pay of $4,216; the merchandise that was sold previously cost $10,585. 7. Paid a total of $555 for rent and insurance in advance. 8. Received $3,048 from customers who had promised to pay. 9. Paid $5,510 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? $90,217 You are correct. Your receipt no. is 152-959 O Previous Tries 5. What were total equities on January 31? Submit Answer Incorrect. Tries 1/3 Previous Tries 6. What was net income in January? Submit Answer Tries 0/3Explanation / Answer
CALCULATION OF CASH BALANCE AS ON 31ST JANUARY:
Opening balance of Cash
52,105
Stock Sold
46,000
Borrowings
22,000
Merchandise bought
(3,855)
Equipment bought
(37,400)
Payment to merchandise supplier
(2,570)
Merchandise sold
16,954
Rent and Insurance Payment
(555)
Received from customer
3,048
Payment for wages
(5,510)
Cash Balance as on 31st January
90,217
CALCULATION OF TOTAL EQUITIES AS ON 31ST JAN.
Total equities as on 01, January
3,81,677
Borrowings
22,000
Account payable- Merchandise Bought
4,188
Account Payable- Equipment Purchases
4,200
Less: payment to merchandise supplier
(2,570)
Total Equities as on 31, January
4,09,495
CALCULATION OF NET INCOME IN JANUARY:
Sales
46,000
Less: Purchases of Merchandise
(8,043)
Less: Wages, Utilities & Misc Exp.
(5,510)
Net Income
32,447
PLEASE RATE MY ANSWER AND COMMENT BELOW FOR ANY QUERY.
THANK YOU!!!
Opening balance of Cash
52,105
Stock Sold
46,000
Borrowings
22,000
Merchandise bought
(3,855)
Equipment bought
(37,400)
Payment to merchandise supplier
(2,570)
Merchandise sold
16,954
Rent and Insurance Payment
(555)
Received from customer
3,048
Payment for wages
(5,510)
Cash Balance as on 31st January
90,217
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