X Company, a merchandising company, had the following transactions during the ye
ID: 2395423 • Letter: X
Question
X Company, a merchandising company, had the following transactions during the year:
1. Received $8,199 in cash contributions from the owners.
2. Purchased $8,218 worth of merchandise on account from suppliers.
3. Sold merchandise on account to customers for $10,499; the merchandise cost X Company $8,399.
4. Paid $3,647 to suppliers for merchandise that X Company had previously purchased on account.
5. Collected $3,823 from customers who had previously purchased merchandise on account.
6. Bought equipment for $9,907 with a down payment of $5,106 and a $4,801 loan from the bank.
7. Paid wages of $1,076.
8. Recognized the expiration of $544 of prepaid rent.
If total equities at the beginning of the year were $14,305, what were total equities at the end of the year?
Explanation / Answer
Equity changes by the amount of contributions, profit or loss and dividend payments.
Particulars Amount Opening balance 14305 Add contributions 8199 Add profit 480 Closing balance 22984