The following balance sheet is for X Company: Balance Sheet January 1, 2015 Assets Equities Cash $51,211 Accounts Payable $227,585 Accounts Receivable $13,689 Wages Payable $1,425 Inventory $151,100 Notes Payable $30,956 Prepaid Rent $5,583 Paid-In Capital $228,489 Equipment $333,814 Retained Earnings $66,942 Total Assets $555,397 Total Equities $555,397 The following summary transactions occurred during 2015: 1. Borrowed $4,854 from the bank. 2. Paid $82,114 to suppliers for merchandise purchased on account. 3. Paid for $56,070 of advertising. 4. Purchased $251,776 of merchandise on the account and $197,824 for cash. 5. Sold merchandise for $524,286 on the account and $193,914 for cash; the merchandise cost $373,464. 6. Signed a four-year rental lease for $8,000; paid for one year in advance. 7. Paid $5,718 for land and equipment. 8. Received $210,281 from customers for merchandise sold on account. 9. Received $8,537 in cash contributions from new owners. Required: 1. What was the cash balance on December 31, 2015? 2. What were the total assets on December 31, 2015? 3. What were the total liabilities on December 31, 2015? 4. What was net income in 2015?
The following balance sheet is for X Company: Balance Sheet January 1, 2015 Assets Equities Cash $51,211 Accounts Payable $227,585 Accounts Receivable $13,689 Wages Payable $1,425 Inventory $151,100 Notes Payable $30,956 Prepaid Rent $5,583 Paid-In Capital $228,489 Equipment $333,814 Retained Earnings $66,942 Total Assets $555,397 Total Equities $555,397 The following summary transactions occurred during 2015: 1. Borrowed $4,854 from the bank. 2. Paid $82,114 to suppliers for merchandise purchased on account. 3. Paid for $56,070 of advertising. 4. Purchased $251,776 of merchandise on the account and $197,824 for cash. 5. Sold merchandise for $524,286 on the account and $193,914 for cash; the merchandise cost $373,464. 6. Signed a four-year rental lease for $8,000; paid for one year in advance. 7. Paid $5,718 for land and equipment. 8. Received $210,281 from customers for merchandise sold on account. 9. Received $8,537 in cash contributions from new owners. Required: 1. What was the cash balance on December 31, 2015? 2. What were the total assets on December 31, 2015? 3. What were the total liabilities on December 31, 2015? 4. What was net income in 2015?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following balance sheet is for X Company:
Balance Sheet
January 1, 2015
Assets
Equities
Cash
$51,211
Accounts Payable $227,585
Accounts Receivable $13,689
Wages Payable
$1,425
Inventory
$151,100 Notes Payable
$30,956
Prepaid Rent
$5,583
Paid-In Capital
$228,489
Equipment
$333,814 Retained Earnings $66,942
Total Assets
$555,397 Total Equities
$555,397
The following summary transactions occurred during 2015:
1. Borrowed $4,854 from the bank.
2. Paid $82,114 to suppliers for merchandise purchased on account.
3. Paid for $56,070 of advertising.
4. Purchased $251,776 of merchandise on the account and $197,824 for cash.
5. Sold merchandise for $524,286 on the account and $193,914 for cash; the merchandise cost $373,464.
6. Signed a four-year rental lease for $8,000; paid for one year in advance.
7. Paid $5,718 for land and equipment.
8. Received $210,281 from customers for merchandise sold on account.
9. Received $8,537 in cash contributions from new owners.
Required:
1. What was the cash balance on December 31, 2015?
2. What were the total assets on December 31, 2015?
3. What were the total liabilities on December 31, 2015?
4. What was net income in 2015?
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