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X Company prepares monthly financial statements. The following is the company's balance sheet on October 1: Balance Sheet October 1 Assets Equities Cash $38,480 Accounts
X Company prepares monthly financial statements. The following is the company's balance sheet on October 1:
Balance Sheet |
October 1 |
Assets | Equities | ||
Cash | $38,480 | Accounts Payable | $5,789 |
Accounts Receivable | 5,555 | Notes Payable | 24,993 |
Inventory | 12,121 | ||
Prepayments | 3,239 | Paid-In Capital | 58,877 |
Equipment | 66,704 | Retained Earnings | 36,440 |
Total Assets | $126,099 | Total Equities | $126,099 |
During October, the company
- sold common stock to investors for $25,000,
- paid rent on the first of the month for the rest of the year; rent was $1,200 per month,
- bought equipment costing $10,900, paying the manufacturer $5,900 in cash, and signing a note for $5,000,
- borrowed $20,000 from a bank, and
- paid back a previous interest-free loan for $3,780.
6. After these transactions were recorded, what was the balance in the Cash account [ignore adjusting entries]?
7. After these transactions were recorded, what were total assets [ignore adjusting entries]?
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