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 $50,676 Accounts Payable $65,758 Accounts Receivable 33,728 Notes Payable 31,613 Inventory 80,609 Prepaid Rent 6,118 Paid-In Capital 252,133 Equipment 241,894 Retained Earnings 63,521 Total Assets $413,025 Total Equities $413,025 The following summary transactions occurred during July: Sold stock to investors for $45,000. Borrowed $21,000 from a bank and paid off a $14,000 bank loan. Bought $8,729 of merchandise from suppliers, paying $3,219 and promising to pay the rest in August. Bought equipment for $36,100 from a manufacturer, paying $4,100 and promising to pay the rest in September. Paid $4,402 to suppliers that it bought merchandise from in June. Sold merchandise, receiving $16,551 cash and promises from customers to pay $4,839; the merchandise that was sold cost $10,695 and was purchased earlier in July. Paid $562 for rent in advance. Received $3,762 from customers who purchased merchandise last month. Paid wages and other miscellaneous expenses totaling $5,610. Note: Ignore adjusting entries. 4. What was the cash balance on July 31? A: $33,588 B: $44,672 C: $59,413 D: $79,020 E: $105,096 F: $139,778 G: $185,904 H: $247,253 Tries 0/3 5. What were total equities on July 31? A: $503,218 B: $669,280 C: $890,142 D: $1,183,889 E: $1,574,573 F: $2,094,182 G: $2,785,262 H: $3,704,398 Tries 0/3 6. What was Net Income in July? A: $3,823 B: $5,085 C: $6,763 D: $8,995 E: $11,963 F: $15,911 G: $21,162 H: $28,145

Answer 1

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