X Company, a merchandiser, had the following transactions in August:

Borrowed $23,000 from a bank.

Bought equipment costing $9,300, paying the manufacturer $5,300 in cash and promising to pay the remaining $4,000 next month.

Paid utility expenses of $5,042.

Purchased a $5,000, five-year insurance policy, paying for three years in advance.

Paid back a previous loan for $3,450.

7. If total liabilities on August 1 were $32,761, what were total liabilities on August 31?

A: $56,311

B: $63,631

C: $71,904

D: $81,251

E: $91,814

F: $103,749

Answer Submitted: Your final submission will be graded after the due date.

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8. If total equities on August 1 were $72,165, what were total equities on August 31?

A: $46,425

B: $58,031

C: $72,538

D: $90,673

E: $113,341

F: $141,677