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X Company, a merchandiser, started business on June 1. The following were June transactions:
Received $100,000 from a group of investors.
Bought $8,558 of merchandise, $3,623 for cash and $4,935 on account.
Sold merchandise for $22,300, of which $18,059 was for cash and $4,241 was on account; Cost of Goods Sold was 52% of sales.
Paid $3,024 to suppliers for merchandise previously bought on account.
Paid wages of $5,750.
Collected $2,878 from customers on account.
Paid $5,900 for rent in advance.
4. What were total liabilities on June 30?
| A: $1,020 | B: $1,193 | C: $1,396 | D: $1,633 | E: $1,911 | F: $2,236 |
5. What were total equities on June 30?
| A: $66,723 | B: $78,066 | C: $91,338 | D: $106,865 | E: $125,032 | F: $146,287 |
6. What was net income in June [ignore adusting entries]?
| A: $3,619 | B: $4,234 | C: $4,954 | D: $5,796 | E: $6,782 | F: $7,934 |
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