X Company a merchandising company had the following transact

X Company, a merchandising company, had the following transactions during the year:

1. Received $8,199 in cash contributions from the owners.

2. Purchased $8,218 worth of merchandise on account from suppliers.

3. Sold merchandise on account to customers for $10,499; the merchandise cost X Company $8,399.

4. Paid $3,647 to suppliers for merchandise that X Company had previously purchased on account.

5. Collected $3,823 from customers who had previously purchased merchandise on account.

6. Bought equipment for $9,907 with a down payment of $5,106 and a $4,801 loan from the bank.

7. Paid wages of $1,076.

8. Recognized the expiration of $544 of prepaid rent.

If total equities at the beginning of the year were $14,305, what were total equities at the end of the year?

Solution

Equity changes by the amount of contributions, profit or loss and dividend payments.

Total equities closing balance is 22,984