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X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of January: Balance Sheet January 1 Equities Assets Cash Accounts Receivable $61,786 1,111 32,016 222,882 64,184 $381,979 $52,154 Accounts Payable 34,126 Wages Payable 82,746 Notes Payable Prepaid Rent Equipment Total Assets 5,871 Paid-In Capital 207,082 Retained Earnings $381,979 Total Equities The following summary transactions occurred during January 1. Sold stock to investors for $44,000 2. Borrowed $29,000 from a bank. 3. Bought merchandise from suppliers, paying $3,670 and promising to pay $5,223 next month 4. Bought equipment from a manufacturer, paying $32,800 and promising to pay $4,900 in three months. 5. Paid $3,792 to merchandise suppliers that it had promised to pay 6. Sold merchandise, receiving $17,070 cash and promises to pay of $4,690; the merchandise that was sold previously cost $10,880 7. Paid a total of $553 for rent and insurance in advance. 8. Received $3,624 from customers who had promised to pay 9. Paid $5,870 for wages, utilties, and other miscellaneous expenses. Note: Ignore adjusting entries. 4. What was the cash balance on January 31? $99,163 You are correct. Your receipt no. is 152-5177 5. What were total equities on January 31? Submit Answer Tries 2/3 Previous Tries 6. What was net income in January? Submit Answer Tries 0/3

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