Reference no: EM132736789

X Company, a manufacturer, prepares monthly financial statements. On January 1, total assets were $113,795. The following transactions occurred during January:

1. Acquired $8,100 of direct materials, 56% of of which was acquired on open accounts; the rest was paid in cash.
2. A one year rental agreement was signed for $7,600 per month. Rent for the first two months was paid in advance.
3. Product sales were $125,000; product costs were 74% of sales. 80% of the sales were on open account.
4. Wages and salaries amounted to $10,813, of which $9,928 was paid.
5. Paid $3,224 to suppliers for materials that X Company had previously purchased on account.
6. Collected $3,543 from customers who had previously purchased products from X Company on account.
7. Bought equipment for $83,300 with a down payment of $14,700 and a $68,600 loan from the bank.

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

A: $131,186

B: $163,983

C: $204,979

D: $256,223

E: $320,279

F: $400,349 Tries 0/99

Problem 1: What would Net Income be for January? [Ignore adjusting entries.]

A: $16,984

B: $19,192

C: $21,687

D: $24,506

E: $27,692

F: $31,292