Question

# X Company was formed on July 1, 2017, and had the following transactions during the rest...

X Company was formed on July 1, 2017, and had the following transactions during the rest of 2017: received \$8,444 in cash contributions from the owners purchased \$8,760 worth of merchandise, all on account sold merchandise that cost \$6,377 for \$10,629, all on account paid \$3,943 to suppliers for merchandise purchased on account received \$3,297 from customers for merchandise sold on account paid \$5,105 for land and equipment borrowed cash from the bank in the amount of \$4,236 What were total equities on December 31, 2017 (ignore depreciation on the equipment and interest on the loan)?

Accounting equation should be done here for each transaction.

Assets = Liabilities + Equity

 Particulars Assets = Liabilities + Equity Contribution from owner of \$8,444 +8,444 cash = 0 + +8,444 On account purchase of \$8,760 +8,760 supplies = +8,760 payable + 0 On account sale of \$10,629 having cost price of \$6,377 +10,629 Receivable -6,377 inventory = 0 +4,252 profit Paid supplier by \$3,943 -3,943 cash = -3,943 payable + 0 Received from customer \$3,297 +3,297 cash -3,297 receivable = 0 + 0 Paid for land \$5,105 -5,105 cash +5,105 land = 0 + 0 Borrowing cash of \$4,236 +4,236 cash = +4,236 loan Total 21,749 = 9,053 + 12,696

#### Earn Coins

Coins can be redeemed for fabulous gifts.