Question

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

Balance Sheet

July 1

Assets		Equities
Cash	$39,975	Accounts Payable	$5,261
Accounts Receivable	5,071	Notes Payable	23,084
Inventory	12,389
Prepayments	3,763	Paid-In Capital	70,775
Equipment	69,091	Retained Earnings	31,169
Total Assets	$130,289	Total Equities	$130,289

The following were the company's July transactions:

1. borrowed $29,000 from a bank
2. bought equipment costing $9,200, paying the manufacturer $5,000 in cash and signing a note for $4,200
3. purchased a $6,000, five-year insurance policy, paying for three years in advance
4. paid back a previous loan for $3,610

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]?

Tries 0/3

Answer 1

Question 6

Correct answer-----------$56,765

Question 6

Correct answer-----------159,879

Working

	Cash	Accounts receivable	Inventory	Prepayments	Equipment	Total Assets
Beginning balance	$        39,975.00	$ 5,071.00	$ 12,389.00	$ 3,763.00	$ 69,091.00	$ 130,289.00
Transaction 1	$        29,000.00					$     29,000.00
Transaction 2	$        (5,000.00)				$    9,200.00	$       4,200.00
Transaction 3	$        (3,600.00)			$ 3,600.00		$                    -
Transaction 4	$        (3,610.00)					$     (3,610.00)
Ending balance	$        56,765.00	$ 5,071.00	$ 12,389.00	$ 7,363.00	$ 78,291.00	$ 159,879.00