Question
X Company, a manufacturer, prepares monthly financial statements. On August 1, total equities were $114,481. The following transactions occurred during August: Issued additional shares of
X Company, a manufacturer, prepares monthly financial statements. On August 1, total equities were $114,481. The following transactions occurred during August:
Issued additional shares of stock for $107,000.
Acquired $8,900 of direct materials, $4,539 of it bought on open account, the rest paid for with cash.
A one year rental agreement was signed for $6,800 per month. Rent for the first two months was paid in advance.
Product sales were $103,000, $23,975 of which were cash sales; the rest were on account. Product costs were $79,310.
Paid wages and salaries of $10,154.
Paid $23,975 to suppliers for materials that X Company had previously purchased on account.
Collected $23,594 from customers who had previously purchased products from X Company on account.
What would total equities be on August 31? [Ignore adjusting entries.]
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