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:

-borrowed $4,854 from the bank

-paid $82,114 to suppliers for merchandise purchased on account

-paid for $56,070 of advertising

-purchased $251,776 of merchandise on account and $197,824 for cash

-sold merchandise for $524,286 on account and $193,914 for cash; the merchandise cost $373,464

-signed a four-year rental lease for $8,000; paid for one year in advance

-paid $5,718 for land and equipment

-received $210,281 from customers for merchandise sold on account

-received $8,537 in cash contributions from new owners

Note: Ignore adjusting entries.

3. What was the cash balance on December 31, 2015?

4. What were total assets on December 31, 2015?

5. What were total liabilities on December 31, 2015?

6. What was net income in 2015?

Answer rating: 100% (QA)

Answer Solution Part 3 The cash balance on December 31 2015 is calculated as follows Opening Cash Balance as on 01012016 51211 Add Loan 4854 Accounts ... View the full answer