s 4 and 5 refer to the following information: X Company, a manufacturer, prepares monthly financial statements. On August 1, total equities were $114,870. The following transactions occurred during August: Issued additional shares of stock for $112,000. Acquired $8,300 of direct materials, 51% of of which was acquired on open accounts; the rest was paid in cash. I A one year rental agreement was signed for $5,700 per month. Rent for the first two months was paid in advance. Product sales were $120,000; product costs were 76% of sales, 73% of the sales were on open account. Wages and salaries amounted to $11,863, of which $11,008 was paid. Paid $3,548 to suppliers for materials that X Company had previously purchased on account. Collected $3,592 from customers who had previously purchased products from X Company on account. Bought equipment for $87,200 with a down payment of $19,300 and a $67,900 loan from the bank. 4. What would total equities be on August 317 [Ignore adjusting entries.] OA: $177,086 B: $235,524 C: $313,247 D: $416,619 OE: $554,103 OF: $736,956 Submit Answer Tries 0/99 5. What would Net Income be for August? [Ignore adjusting entries.] OA: $13,264 Submit Answer B: $14,988 C: $16,937 OD: $19,139 E: $21,627 F: $24,438) Tries 0/99