Question

X Company, a merchandising company, had the following transactions during the year:

1. Received $8,291 in cash contributions from the owners

2. Purchased $8,294 worth of merchandise on account from suppliers

3. Sold merchandise on account to customers for $12,180; the merchandise cost X Company $8,526

4. Paid $3,456 to suppliers for merchandise that X company had previously purchased on account.

5. Collected $3,837 from customers who had previously purchased merchandise on account

6. Bought equipment for $9,822 with a down payment of $5,618 and a $4,204 loan from the bank

7. Paid wages of $1,175

8. Recognized the expiration of $583 of prepaid rent

40) If total equities at the beginning of the year were 14759, what were total equities at the end of the year?

Answer 1

$14,759 $8,291 Total equities at the beginning Add: Net income earned during the period Less: Dividends declared Total equities at the end 1,896 [Ref: Workings] $0 $24,946 Workings: $12,180 Sale revenue from merchandise sold Less: Cost of merchandise sold Wages paid Prepaid rent expired Net income earned during the period $8,526 $1,175 $583 51,896