Question

X Company started business on June 1 and prepares monthly financial statements. The following were June transactions:

1. received $50,000 from a group of investors
2. bought $8,952 of merchandise, $3,132 for cash and $5,820 on account
3. sales were $42,400, of which $37,965 were for cash and $4,435 were on account; Cost of Goods Sold was $21,624
4. paid $3,192 to suppliers for merchandise previously bought on account
5. collected $2,868 from customers on account
6. paid expenses totalling $6,487

4. What were total assets on June 30?

Tries 0/3

5. What was Net Income in June?

Answer 1

4) Total assets

1	50000
2	8952-3132 = 5820
3	42400-21624 = 20776
4	-3192
5	-6487
Total assets	66917

5) Net income

Sales	42400
Cost of goods sold	-21624
Expense	-6487
Net income	14289