X Company, a manufacturer, prepares monthly financial statements. On May 1, total equities were $118,742. The following transactions occurred during May: Issued additional shares of stock for $103,000. Acquired $8,200 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 $7,100 per month. Rent for the first three months was paid in advance. Product sales were $118,000; product costs were 64% of sales. 71% of the sales were on open account. Wages and salaries amounted to $11,119, of which $10,132 was paid. Paid $3,451 to suppliers for materials that X Company had previously purchased on account. Collected $3,588 from customers who had previously purchased products from X Company on account. Bought equipment for $83,500 with a down payment of $14,100 and a $69,400 loan from the bank. 4. What would total equities be on May 31? [Ignore adjusting entries.] A: $154,402 B: $223,883 C: $324,631 D: $470,715 Tries 0/99 E: $682,537 F: $989,678 5. What would Net Income be for May? [Ignore adjusting entries.] A: $12,845 B: $16,057 OC: $20,071 OD: $25,089 E: $31,361 OF: $39,201 Tries 0/99