Question
X Company, a merchandising company, had the following transactions during 2020: Received $8,005 from new owners. Purchased $8,539 worth of merchandise on account from suppliers.
X Company, a merchandising company, had the following transactions during 2020: Received $8,005 from new owners. Purchased $8,539 worth of merchandise on account from suppliers. Sold merchandise on account to customers for $10,311; the merchandise cost X Company $7,218. Paid $3,438 to suppliers for merchandise that X Company had previously purchased on account. Collected $3,066 from customers who had previously purchased merchandise on account. Bought equipment for $9,865 with a down payment of $5,638 and a $4,227 loan from the bank. Paid wages of $1,097. Recognized the expiration of $548 of prepaid rent.
8. If total assets at the beginning of 2020 were $10,509, what were total assets at the end of 2020? A: $22,939 B: $25,921 C: $29,290 D: $33,098 E: $37,401 F: $42,263 Tries 0/99
9. If total liabilities at the beginning of 2020 were $3,010, what were total liabilities at the end of 2020? A: $12,338 B: $14,435 C: $16,889 D: $19,761 E: $23,120 F: $27,050 Tries 0/99
10. What was Net Income in 2020? A: $661 B: $773 C: $904 D: $1,058 E: $1,238 F: $1,448
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