Course Contents » X Company was created on September 1 and prepares monthly fina
ID: 2483851 • Letter: C
Question
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X Company was created on September 1 and prepares monthly financial statements. During September, the company had the following transactions:
Received $85,000 from a group of investors and received a $98,000 loan from the bank.
Bought $8,195 of merchandise, $3,877 for cash and $4,318 on account.
Bought equipment costing $9,800, paying the manufacturer $5,300 in cash and promising to pay the remaining $4,500 next month.
Sold merchandise for $20,360, of which $15,848 was for cash and $4,512 was on account; cost of the merchandise was $10,180.
Paid $3,780 to suppliers for merchandise previously bought on account.
Collected $2,818 from customers on account.
Paid wages of $5,650.
Paid a total of $510 for rent and insurance in advance.
Recorded depreciation of $1,900.
Recorded a total of $111 for rent and insurance that had expired.
5. What were total equities on September 30?
Explanation / Answer
Sales Revenue 20360 Cost Of mechadise 10180 paid Wages 5650 Paid Rent & Insurance 111 Depriciation 1900 Profit tarnsferres to reatined earning 2519 Opening Equity 85000 Retained Earning 2519 Total Equity at end 87519