Question

X Company prepares monthly financial statements. The following is the company's July 1 Balance Sheet:

Balance Sheet

July 1

Assets		Equities
Cash	$37,735	Accounts Payable	$5,304
Accounts Receivable	5,080	Notes Payable	20,534
Inventory	14,690
Prepayments	3,320	Paid-In Capital	67,018
Equipment	65,324	Retained Earnings	33,293
Total Assets	$126,149	Total Equities	$126,149

The following were the company's July transactions:

1. borrowed $30,000 from a bank
2. bought equipment costing $9,400, paying the manufacturer $5,200 in cash and signing a note for $4,200
3. purchased a $5,000, five-year insurance policy, paying for two years in advance
4. paid back a previous loan for $3,160

6. What was the balance in the Cash account on July 31 [ignore adjusting entries]?

Tries 0/3

7. What were total assets on July 31 [ignore adjusting entries]?

Answer 1

Question 6

Correct answer------------$57,375

Question 7

Correct answer------------$ 157,189

Working

	Cash	Accounts receivable	Inventory	Prepayments	Equipment	Total Assets
Beginning balance	$        37,735.00	$ 5,080.00	$ 14,690.00	$   3,320.00	$ 65,324.00	$ 126,149.00
Transaction 1	$        30,000.00					$     30,000.00
Transaction 2	$        (5,200.00)				$    9,400.00	$       4,200.00
Transaction 3	$        (2,000.00)			$   2,000.00		$                    -
Transaction 4	$        (3,160.00)					$     (3,160.00)
Ending balance	$        57,375.00	$ 5,080.00	$ 14,690.00	$   5,320.00	$ 74,724.00	$ 157,189.00