question 14

Use the following information for the next three questions Granger's Tutoring Center, a brand new company, starts with a cash balance of $4,200 as of 1/1/09. It records the following transactions during the month of January: i. Sell common stock for $10,000. ii. Purchase equipment for $11,500 on account iii. Pay employee salaries of $3,700. iv. Provides services to customers for $6,200 cash and $800 on credit. v. Pay for '/ of the equipment purchased earlier in the month. 13. What is Granger's cash balance as of 1/31/091? ANSWER: $10,950 14. What is Granger's net income for the month of January? ANSWER: $3,300 15. What is Granger's total liabilities balance as of 1/31/09? ANSWER: $5,750