Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

X Company, a merchandiser, started business on June 1. The following were June transactions: Received $88,000 from a group of investors. Bought $8,222 of merchandise,

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

Received $88,000 from a group of investors.

Bought $8,222 of merchandise, $3,380 for cash and $4,842 on account.

Sold merchandise for $21,800, of which $17,451 was for cash and $4,349 was on account; Cost of Goods Sold was 57% of sales.

Paid $3,601 to suppliers for merchandise previously bought on account.

Paid wages of $5,700.

Collected $2,540 from customers on account.

Paid $5,400 for rent in advance.

4. What was the balance in the cash account on June 30?

5. What were total equities on June 30?

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

Need 4, 5, and 6 for thumbs up

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

978-0078025914

Students also viewed these Accounting questions