s 4 and 5 refer to the following information: X Company, a manufacturer, prepares monthly financial statements. On August 1, total equities were $116,087. The following transactions occurred during August: Issued additional shares of stock for $100,000. Acquired $8,800 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 $7,000 per month. Rent for the first two months was paid in advance. Product sales were $121,000; product costs were 70% of sales. 72% of the sales were on open account. Wages and salaries amounted to $10,854, of which $10,030 was paid. Paid $3,600 to suppliers for materials that X Company had previously purchased on account. Collected $3,787 from customers who had previously purchased products from X Company on account. Bought equipment for $79,700 with a down payment of $15,800 and a $63,900 loan from the bank. 4. What would total equities be on August 31? [Ignore adjusting entries.] A: $125,987 B: $157,484 C: $196,854 D: $246,068 E: $307,585 F: $384,481 Submit Answer Tries 0/99 5. What would Net Income be for August? [Ignore adjusting entries.] A: $21,749 B: $25,446 C: $29,772 D: $34,833 E: $40,755 F: $47,683 Submit Answer Tries 0/99