Question

Questions 4, 5, and G refer to the following balance sheet and transactions:web> X Company is a m and prepares monthly financial statements. The following is its balance sheet at the beginning of July: erchandiser Balance Shect July 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equities S51,256 Accounts Payable $62,519 31,599 32,765 Notes Payable 84,187 5,377 Paid-In Capital 233,176 Retained Earnings 249,758 62,885 $406,761 Total Assets 8406,761 Total Equities The following summary transactions occurred during July: 1. Sold stock to investors for $49,000. 2. Burrowed $22,000 from a bank and paid off a S13,000 bank loan 3. Bought 88,739 of merchandise from suppliers, paying $3,453 and promising to pay the rest in August. 1. Bought equipment for $35,000 fron a manufacturer, paying $4,600 and promising to pay the rest in September. 5. Paid 84,281 to suppliers that it bought merchandise from in June 6. Sold merchandise, receiving S17,124 cash and promisess (rurn customers to pay $4,856; the merchandise that was sold cost $11,140 and was purchased earlier in July. 7. Paid 8563 for rent in advance 8. Received $3,447 from customers who purchased merchandise last month. 9. Paid wages and other miscellaneous expenses totaling S5,790. Note: Ignore adjusting entries. 8ptt. What was the cash balance on July 31? 4. AO883,789 BO s111.440 сО$148.215 DO s197,126 EO$262,178 FOss 18.697 8 pt What were total equities on July 31? 5. AO $366364 BO 428,646 CO 8501,516 DO $586,774 EO $686,525 FO S803,235 8yts. What was Net lacome in July? 6. AO 84,573 BO 5,350 cO s6,26 DO ST,324 E 8,569 ,025

Answer 1

4	Cash 51256+49000+22000-13000-3453-4600-4281-563-5790+3447+17424	111440
	Correct answer is B
5	Equity
	Accounts payable	93924	62519+8739-3453+35000-4600-4281
	Notes payable	40599	31599+22000-13000
	Paid in capital	298758	249758+49000
	Retained earnings	68235	62885+5350
	Total equities	501516
	Correct answer is C
6	Particulars	Amount
	Sales	22280	17424+4856
	Cost of goods sold	11140
	Gross profit	11140
	Wages and other misc expense	5790
	Net income	5350
	Correct answer is B