s 4 and 5 refer to the following information: X Company, a manufacturer, prepares monthly financial statements. On May 1, total equities were $114,728. The following transactions occurred during May: Issued additional shares of stock for $112,000. Acquired $8,100 of direct materials, 56% of of which was acquired on open accounts; the rest was paid in cash. A one year rental agreement was signed for $7,700 per month. Rent for the first two months was paid in advance. I Product sales were $124,000; product costs were 65% of sales. 61% of the sales were on open account. Wages and salaries amounted to $11,720, of which $10,787 was paid. Paid $3,862 to suppliers for materials that X Compaly had previously purchased on account. Collected $3,419 from customers who had previously purchased products from X Company on account. Bought equipment for $88,200 with a down payment of $18,500 and a $69,700 loan from the bank." 4. What would total equities be on May 317 [Ignore adjusting entries.) OA: $228,509 OB: $258,215 Oc: $291,783 OD: $329,715 OE: $372,578 OF: $421,013 Submit Answer Tries 0/99 5. What would Net Income be for May? [Ignore adjusting entries.) OA: $13,466 OB: $17,909 Oc: $23,820 OD: $31,680 OE: $42.134 OF: $56,039 Submit Answer Tries 0/99)