Answered step by step
Verified Expert Solution
Question
1 Approved Answer
web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July: Balance Sheet July
web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July: Balance Sheet July 1 Assets Cash Accounts Receivable Inventory Prepaid Rent Equipment Total Assets Equities $55,984 33,466 $50,167Accounts Payable 30,030 Notes Payable 5,308Paid-In Capital $363,331 Total Equities 76,499 205,783 68,098 $363,331 201,327 Retained Earnings The following summary transactions occurred during July 1. Sold stock to investors for $43,000 2. Borrowed $25,000 from a bank and paid off a $12,000 bank loan 3. Bought $8,441 of merchandise from suppliers, paying $3,529 and promising to pay the rest in August. 4. Bought equipment for $37,800 from a manufacturer, paying $5,000 and promising to pay the rest in September. 5. Paid 3,710 to suppliers that it bought merchandise from in June 6. Sold merchandise, receiving16,541 cash and promises from customers to pay4,339; the merchandise that was sold cost $10,440 and was purchased earlier in July 7. Paid $565 for rent in advance 8. Received $2,602 from customers who purchased merchandise last month. 9. Paid wages and other miscellaneous expenses totaling $5,100 Note: Ignore adjusting entries. 4. What was the cash balance on July 31? A: $25,809 B: $34,326 C: $45,653 D: $60,719E: $80,756F: $107,406G: $142,850H: $189,990 Submit Answer Tries 0/3 5. What were total equities on July 31? A: $286,382 B: $335,067 C: $392,028D: $458,673E: $536,647F: $627,877G: $734,617 H: $859,501 Submit Answer Tries 0/3 1: $,205 6. What was Net Income in July? A: $3,275| B: $3,701| C: 4,182| D: $4,726| E: $5,340| F: $6,034| G: $6,819| H: $7,705
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started