Reference no: EM132785320

X Company, a manufacturer, prepares monthly ?nancial statements. On August 1, total assets were $110,355. The following transactions occurred during August:

• Issued additional shares of stock for $105,000.
• Acquired $8,900 of direct materials, 56% of of which was acquired on open accounts; the rest was paid in cash.
• A one year rental agreement was signed for $6,100 per month.
• Rent for the first three months was paid in advance.
•  Product sales were $108,000; product costs were 75% of sales. 74% of the sales were on open account.
• Wages and salaries amounted to $10,256, of which $9,416 was paid.
• Paid $3,131 to suppliers for materials that X Company had previously purchased on account.
• Collected $3,117 from customers who had previously purchased products from X Company on account.
• Bought equipment for $77,900 with a down payment of $13,000 and a $64,900 loan from the bank

problem 1: What would total assets be on August 31? [Ignore adjusting entries.]

problem 2: What would Net Income be for August? [Ignore adjusting entries.]