Question
X Company, a merchandiser, started business on June 1. The following were June transactions: Received $95,000 from a group of investors. Bought $8,099 of merchandise,
X Company, a merchandiser, started business on June 1. The following were June transactions:
Received $95,000 from a group of investors.
Bought $8,099 of merchandise, $3,924 for cash and $4,175 on account.
Sold merchandise for $21,000, of which $16,648 was for cash and $4,352 was on account; Cost of Goods Sold was 58% of sales.
Paid $3,333 to suppliers for merchandise previously bought on account.
Paid wages of $5,660.
Collected $2,687 from customers on account.
Paid $5,300 for rent in advance.
4. What were total liabilities on June 30?
5. What were total equities on June 30?
6. What was net income in June [ignore adusting entries]?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started