Reference no: EM133148569

Question - Company had the following transactions for 2020, the first year of operations:

1) Issued common stock for $50,000 cash.

2) Purchased merchandise on account, $40,000.

3) Sold merchandise on account for $25,000. The inventory sold had cost $14,000.

4) Paid for the merchandise purchased within the discount period.

5) Collected $20,000 on the merchandise sold on account.

6) Paid operating expense of $5.000.

Required - Answer the following questions. Show your work.

a) What are total assets at the end of 2020?

b) What is the balance of the cash account at the end of 2020?

c) What is gross margin for 2020?

d) What is net income for 2020?

e) What are total liabilities at the end of 2020?

f) What is total equity at the end of 2020?

g) What is total retained earnings at the end of 2020?