financial statements. The following is the con Balance Sheet July 1 July 1 Palance Shee Kwany prepares monthly Equities Accounts Payable Notes Payable $5,197 22.691 Assets Cash Accounts Receivable Inventory Prepayments Equipment Total Assets $35,418 5,948 10,230 3,889 63.606 $119,091 Paid In Capital Retained Earnings Total Equities 58,056 33.147 $119,091 The following were the company's July transactions 1 borrowed $20,000 from a bank signing a note for $4,400 cht equipment costing 5,000, paying the manufacturer $5.500 in cash and signing a note for SA 2. bought equipo 3. purchased a 30 cused a $6,000, five-year insurance policy, paying for two years in advance 4. paid back a previous loan for $3,580 of 16. What was the balance in the Cash account on July 31 [ignore adjusting entries)? 6. AO $28,120 BO $35,150 CO 843,938 DO $54,922 EO $68,653 FO 885,816 8pt 7. What were total assets on July 31 [ignore adjusting entries)? 7. AO $63,815 BO $74,664 CO $87,356 DO $102,207 EO $119,582 FO $139,911 X Company prepares monthly financial statements. Its accountant recorded the following October 1 transaction appropriate adjusting entries on October 31: 1. On October 1, the company paid rent for the final three months of the year. Rent was $1,525 per month 2. On October 1, the company purchased equipment that cost $10,000, borrowing the full amount from a equipment has a life of three years and a salvage value at that time of $1.000. The company will repay December 31, along with interest at $102 per month 18 pt 8. What was the effect of the accountant's entries on total assets? 8. AO $4,650 BO 86,184 CO 88,225 DO $10,939 EO $14,549 FO $19,350 8 pt 9. What was the effect of the accountant's entries on Net Income in October? 9. AO S-1,201 BO S-1,502 CO S-1,877 DO $-2,346 EO 8-2,933 FO $-3,666