Question

Questions 4, 5, and 6 refer to the following balance sheet and transactionswebs X Company is a merehandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July: Balance Sheet July 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets Equities S53,017 Accounts Payable 32,513 Notes Payable 78,989 5,686 Paid-In Capital 213,255 Retained Earnings $56,601 33,195 218,915 74,749 $383,460 $383,460 Total Equities The following summary transactions occurred during July: 1. Sold stock to investors for $45,000. 2. Borrowed $30,000 from a bank and paid off a $15,000 bank loan. 3. Bought $8,151 of merchandise from suppliers, paying $3,172 and promising to pay the rest in August. 4. Bought equipment for $44,500 from a manufacturer, paying $4,500 and promising to pay the rest in September. 5. Paid $3,396 to suppliers that it bought merchandise from in June. 6. Sold merchandise, receiving $15,942 cash and promises from customers to pay $4,258; the merchandise that was sold cost $10,100 and was purchased earlier in July 7. Paid $576 for rent in advance. 8. Received $2,545 from customers who purchased merchandise last month. 9. Paid wages and other miscellaneous expenses totaling $5,080 Note: Ignore adjusting entries. 8 pt. What was the cash balance on July 31? 4. AO $71,665 BO$83,848 CO $98,103 EO sĩ34,293 DO sĩ14,780 FO sis7122 8 pts. What were total equities on July 31? 5. AO $418,857 BO 490,063 CO $573,374 EO $784,891 DO $670,847 FO $918,323 8 pts. What was Net Income in July? 6. AO $5,020 BO S6,677 CO $8,880 DO $11,810 EO $15,708 FO $20,891

Answer 1

Answer 4
Cash Balance	$        114,780
Correct Option is D	D
Answer 5
Paid In Capital	$        263,915
Retained earnings	$           79,769
Total equities	$        343,684
Option should not be provided. Contact your instructor or professor.
Answer 6
Net income	$             5,020
Correct Option is A	A

event	Balance sheet									Income Statement
	Assets					Liabilities		Equities
	Cash	Account Receivable	Inventory	Prepaid rent	equipment	Account Payable	Note Payable	Paid In Capital	Retained earnings	Revenue	Expense	Net Income
Beg. Bal	$           53,017	$       32,513	$     78,989	$        5,686	$     213,255	$        56,601	$        33,195	$        218,915	$        74,749
1	$           45,000							$          45,000	$                 -			$                 -
2	$           15,000						$        15,000		$                 -			$                 -
3	$           (3,172)		$       8,151			$          4,979			$                 -			$                 -
4	$           (4,500)				$       44,500	$        40,000			$                 -			$                 -
5	$           (3,396)					$        (3,396)			$                 -			$                 -
6	$           15,942	$          4,258	$ (10,100)						$        10,100	$ 20,200	$ 10,100	$        10,100
7	$              (576)			$           576					$                 -			$                 -
8	$             2,545	$       (2,545)							$                 -			$                 -
9	$           (5,080)								$        (5,080)		$    5,080	$        (5,080)
Total	$        114,780	$       34,226	$     77,040	$        6,262	$     257,755	$        98,184	$        48,195	$        263,915	$        79,769	$ 20,200	$ 15,180	$          5,020