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X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January: Balance SheetJanuary 1 Assets
X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January:Balance SheetJanuary 1
Assets Equities
Cash $50,229 Accounts Payable $50,481
Accounts Receivable 33,196Wages Payable 1,310
Inventory 81,449 Notes Payable 34,674
Prepaid Rent 5,870 Paid-In Capital 244,659
Equipment 229,034 Retained Earnings 68,654
Total Assets $399,778 Total Equities $399,778
The following summary transactions occurred during January:
- Sold stock to investors for $41,000.
- Borrowed $27,000 from a bank.
- Bought merchandise from suppliers, paying $3,795 and promising to pay $4,723 next month.
- Bought equipment from a manufacturer, paying $31,700 and promising to pay $5,000 in three months.
- Paid $3,421 to merchandise suppliers that it had promised to pay.
- Sold merchandise, receiving $17,811 cash and promises to pay of $4,109; the merchandise that was sold previously cost $10,960.
- Paid a total of $556 for rent and insurance in advance.
- Received $2,230 from customers who had promised to pay.
- Paid $5,400 for wages, utilties, and other miscellaneous expenses.
What was net income in January?
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