Question

web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July:

Balance Sheet

July 1

Assets		Equities
Cash	$51,224	Accounts Payable	$58,945
Accounts Receivable	32,564	Notes Payable	34,137
Inventory	79,249
Prepaid Rent	5,512	Paid-In Capital	222,746
Equipment	220,502	Retained Earnings	73,223
Total Assets	$389,051	Total Equities	$389,051

The following summary transactions occurred during July:

1. Sold stock to investors for $44,000.
2. Borrowed $28,000 from a bank and paid off a $10,000 bank loan.
3. Bought $8,424 of merchandise from suppliers, paying $3,293 and promising to pay the rest in August.
4. Bought equipment for $44,100 from a manufacturer, paying $4,700 and promising to pay the rest in September.
5. Paid $3,486 to suppliers that it bought merchandise from in June.
6. Sold merchandise, receiving $16,554 cash and promises from customers to pay $4,826; the merchandise that was sold cost $10,690 and was purchased earlier in July.
7. Paid $573 for rent in advance.
8. Received $3,419 from customers who purchased merchandise last month.
9. Paid wages and other miscellaneous expenses totaling $5,670.

Note: Ignore adjusting entries. 4. What was the cash balance on July 31?

A: $86,823

B: $115,475

C: $153,582

D: $204,264

E: $271,671

F: $361,322

G: $480,558

H: $639,143

Tries 0/3

5. What were total equities on July 31?

A: $53,487

B: $77,556

C: $112,457

D: $163,062

E: $236,440

F: $342,839

G: $497,116

H: $720,818

Tries 0/3

6. What was Net Income in July?

A: $2,388

B: $3,462

C: $5,020

D: $7,279

E: $10,555

F: $15,304

G: $22,191

H: $32,177

Answer 1

The answer has been presented in the supporting sheets. All the parts has been solved with detailed explanation and formulas and format. For detailed answers refer to the supporting sheets.