Course Contents > SECOND CHANCE EXAM 3 Questions 4, 5 &6 Tirmer Notes Evaluate F

Question

Course Contents > SECOND CHANCE EXAM 3 Questions 4, 5 &6 Tirmer Notes Evaluate Fee uestions 4, 5, and 6 refer to the following information 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 Cash Accounts Receivable Equities $51,920 Accounts Payable 34,866 Wages Payable 77,995 Notes Payable 5,864 Paid-In Capital 219,499 Retained Earnings $64,085 1,425 32,017 219,896 72,721 tInventory Prepaid Rent Equipment Total Assets $390,144 Total Equities $390,144 The following summary transactions occurred during January 1. Sold stock to investors for $41,000. 2. Borrowed $23,000 from a bank. 3. Bought merchandise from suppliers, paying $3,745 and promising to pay $4,724 next month. 4. Bought equipment from a manufacturer, paying $36,900 and promising to pay $4,300 in three months. 5. Paid $3,160 to 6. Sold 7. Paid a total of $580 for rent and insurance in advance. 8. Received $3,124 from customers who had promised to pay. 9. Paid $5,780 for wages, utilties, and other miscellaneous expenses suppliers that it had promised to pay. se, receiving $17,448 cash and promises to pay of $4,512; the merchandise that was sold previously cost $10,980. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? Submit Answer Tries 0/3 5. What were total equities on January 317 Submit Answer Tries 0/3 6. What was net income in January? Submt Arawer Tries 0/3

Explanation / Answer

Solution:-

4. Cash balance on january 31:-

$86,327

Explanation:- 51,920 + 41,000 + 23,000 - 3,745 - 36,900 - 3,160 + 17,448 - 580 + 3,124 - 5,780 = $ 86,327.

5. What were total equities on january 31:-

$465,208

Explanation:

390,144 + 41,000 + 23,000 + 4,724 + 4,300 - 3,160 + 5,200 = $ 465,208

6. What was net income in January:-

$5,200

Explanation:- (17,448 + 4,512 - 10,980) - 5,780 = $ 5,200

Please Rate or comment if you have any doubt regarding this solution.

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