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X Company, a merchandiser, started business on June 1. The following were June transactions: Received $83,000 from a group of investors. Bought $8,107 of merchandise,

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

Received $83,000 from a group of investors.

Bought $8,107 of merchandise, $3,096 for cash and $5,011 on account.

Sold merchandise for $22,400, of which $18,271 was for cash and $4,129 was on account; Cost of Goods Sold was 57% of sales.

Paid $3,228 to suppliers for merchandise previously bought on account.

Paid wages of $5,330.

Collected $2,682 from customers on account.

Paid $5,400 for rent in advance.

4. What were total liabilities on June 30?

A: $1,113 B: $1,303 C: $1,524 D: $1,783 E: $2,086 F: $2,441

5. What were total equities on June 30?

A: $45,612 B: $57,014 C: $71,268 D: $89,085 E: $111,356 F: $139,195

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

A: $1,762 B: $2,203 C: $2,753 D: $3,442 E: $4,302 F: $5,378

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