X Company started business on June 1 and prepares monthlyfinancial statements. The following were...

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Accounting

X Company started business on June 1 and prepares monthlyfinancial statements. The following were June transactions:
received $45,000 from a group of investors
bought $8,413 of merchandise, $3,920 for cash and $4,493 onaccount
sales were $42,400, of which $38,115 were for cash and $4,285were on account; Cost of Goods Sold was $23,744
paid $3,785 to suppliers for merchandise previously bought onaccount
collected $2,571 from customers on account
paid expenses totalling $8,222
4. What were total assets on June 30? 5. What was Net Income inJune?

Answer & Explanation Solved by verified expert

4.3 Ratings (516 Votes)

Sales	$ 42,400
Less : Cost of Goods Sold	$ 23,744
Gross Profit	$ 18,656
Expenses	$ 8,222
Net Income	$ 10,434

4. Total Assets = Total Liabilities + Total Equity = $56142

Accounts Payable	$ 708
Equity	$ 55,434
	$ 56,142

Note : There is some error in question, i.e. Total inventory purchased is $8413, but cost of goods sold is $23744 which is not possible. Therefore part 4 has been solved indirectly. If any change in question, kindly comment.

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In: AccountingX Company started business on June 1 and prepares monthlyfinancial statements. The following were June...X Company started business on June 1 and prepares monthlyfinancial statements. The following were June transactions:received $45,000 from a group of investorsbought $8,413 of merchandise, $3,920 for cash and $4,493 onaccountsales were $42,400, of which $38,115 were for cash and $4,285were on account; Cost of Goods Sold was $23,744paid $3,785 to suppliers for merchandise previously bought onaccountcollected $2,571 from customers on accountpaid expenses totalling $8,2224. What were total assets on June 30? 5. What was Net Income inJune?