Question
X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January: Balance Sheet January 1
X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January:
Balance Sheet |
January 1 |
Assets | Equities | ||
Cash | $52,864 | Accounts Payable | $53,842 |
Accounts Receivable | 30,569 | Wages Payable | 1,147 |
Inventory | 81,221 | Notes Payable | 34,975 |
Prepaid Rent | 6,444 | Paid-In Capital | 249,018 |
Equipment | 241,071 | Retained Earnings | 73,187 |
Total Assets | $412,169 | Total Equities | $412,169 |
The following summary transactions occurred during January:
Sold stock to investors for $45,000.
Borrowed $26,000 from a bank.
Bought merchandise from suppliers, paying $3,330 and promising to pay $5,301 next month.
Bought equipment from a manufacturer, paying $33,400 and promising to pay $5,000 in three months.
Paid $3,707 to merchandise suppliers that it had promised to pay.
Sold merchandise, receiving $17,197 cash and promises to pay of $4,353; the merchandise that was sold previously cost $10,775.
Paid a total of $530 for rent and insurance in advance.
Received $2,564 from customers who had promised to pay.
Paid $5,370 for wages, utilties, and other miscellaneous expenses.
Note: Ignore adjusting entries. 4. What was the cash balance on January 31?
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