Question

X Company started business on June 1 and prepares monthly financial statements. The following were June transactions: 1. received $47.000 from a group of investors 2. bought $8,215 of merchandise, $3,997 for cash and $4,218 on account 3. sales were $41.000, of which $36.08S were for cash and $4,912 were on account: Cost of Goods Sold was $23.370 4. paid $3.422 to suppliers for merchandise previously bought on account 5. collected $2,503 fron customers on account 6. paid expenses totalling $7.852 8 pt 4. What were total assets on June 30? AO $13,835 4. BỘ S18,400 CO $24,472 DO $32,548 EO $43,289 FO $57,574 8 pt 5. What was Net Income in June? 5. BO $9,778 AO $7,352 CO $13,005 DO $17,296 EO $23,004 FO $30,595

Answer 1

Answer 1

Calculation of Total asset as on 30 June
Cash received from Investors	47,000
Bought Merchandise	8,215
Cash spend for purchase of Merchandise	(3,997)
Cash Sales	36,088
Trade Receivables	4,912
Cost of Goods Sold	(23,370)
Cash paid to Supplier	(3,422)
Cash received from Receivable	2,503
Reduction in Receivables	(2,503)
Cash paid for Expenses Incurred	(7,852)
Total Assets	57,574

Answer 2

Calculation of Net Income in June
Sales	41,000
Cost of Goods Sold	(23,370)
Expenses	(7,852)
Net Income	9,778