Questions 7, 8, and 9 refer to the following
information:
X Company, a merchandiser, had the following
transactions in August:
1. Borrowed $24,000 from a bank.
2. Bought equipment costing $9,900, paying the
manufacturer $5,600 in cash and promising to
pay the remaining $4,300 next month.
3. Paid a utility bill for $5,721.
4. Purchased a $6,000, five-year insurance policy,
paying for two years in advance.
5. Received $2,206 from customers for merchandise
that had to be ordered and would be delivered
next month.
6. Paid back a previous loan for $3,520.
7. If the balance in the cash account on August 1 was
$38,323, what was the balance on August 31?
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8. If total assets on August 1 were $73,416, what were
total assets on August 31?
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9. If total liabilitiess on August 1 were $30,393, what
were total liabilities on August 31?
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