X Company, a merchandiser, started business on June 1. The following were June transactions:

Received $100,000 from a group of investors.

Bought $8,558 of merchandise, $3,623 for cash and $4,935 on account.

Sold merchandise for $22,300, of which $18,059 was for cash and $4,241 was on account; Cost of Goods Sold was 52% of sales.

Paid $3,024 to suppliers for merchandise previously bought on account.

Paid wages of $5,750.

Collected $2,878 from customers on account.

Paid $5,900 for rent in advance.

4. What were total liabilities on June 30?

A: $1,020

B: $1,193

C: $1,396

D: $1,633

E: $1,911

F: $2,236

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5. What were total equities on June 30?

A: $66,723

B: $78,066

C: $91,338

D: $106,865

E: $125,032

F: $146,287

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6. What was net income in June [ignore adusting entries]?

A: $3,619

B: $4,234

C: $4,954

D: $5,796

E: $6,782

F: $7,934