web> X Company is a merchandiser and prepares monthlyfinancial statements. The following is its balance sheet at thebeginning of July:
| Assets | | Equities | |
| Cash | $51,224 | Accounts Payable | $58,945 |
| Accounts Receivable | 32,564 | Notes Payable | 34,137 |
| Inventory | 79,249 | |
| Prepaid Rent | 5,512 | Paid-In Capital | 222,746 |
| Equipment | 220,502 | Retained Earnings | 73,223 |
| Total Assets | $389,051 | Total Equities | $389,051 |
The following summary transactions occurred during July:
- Sold stock to investors for $44,000.
- Borrowed $28,000 from a bank and paid off a $10,000 bankloan.
- Bought $8,424 of merchandise from suppliers, paying $3,293 andpromising to pay the rest in August.
- Bought equipment for $44,100 from a manufacturer, paying $4,700and promising to pay the rest in September.
- Paid $3,486 to suppliers that it bought merchandise from inJune.
- Sold merchandise, receiving $16,554 cash and promises fromcustomers to pay $4,826; the merchandise that was sold cost $10,690and was purchased earlier in July.
- Paid $573 for rent in advance.
- Received $3,419 from customers who purchased merchandise lastmonth.
- Paid wages and other miscellaneous expenses totaling$5,670.
Note: Ignore adjusting entries. 4. What was thecash balance on July 31?
| A: $86,823 | B: $115,475 | C: $153,582 | D: $204,264 | E: $271,671 | F: $361,322 | G: $480,558 | H: $639,143 |
5. What were total equities on July 31?
| A: $53,487 | B: $77,556 | C: $112,457 | D: $163,062 | E: $236,440 | F: $342,839 | G: $497,116 | H: $720,818 |
6. What was Net Income in July?
| A: $2,388 | B: $3,462 | C: $5,020 | D: $7,279 | E: $10,555 | F: $15,304 | G: $22,191 | H: $32,177 |
