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

Received $98,000 from a group of investors.

Bought $8,491 of merchandise, $3,337 for cash and $5,154 on account.

Sold merchandise for $20,500, of which $16,304 was for cash and $4,196 was on account; Cost of Goods Sold was 55% of sales.

Paid $3,827 to suppliers for merchandise previously bought on account.

Paid wages of $5,650.

Collected $2,804 from customers on account.

Paid $5,400 for rent in advance.

4. What were total liabilities on June 30?

A: $1,039

B: $1,174

C: $1,327

D: $1,500

E: $1,694

F: $1,915

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5. What were total assets on June 30?

A: $32,886

B: $43,739

C: $58,173

D: $77,370

E: $102,902

F: $136,860

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

A: $1,520

B: $2,021

C: $2,688

D: $3,575

E: $4,755

F: $6,324

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