Assume the following: XYZ Engineering Supplies Company had the following transactions (Please, use the Chart of Accounts on the next page): 1. Issued capital stock for $100,000. 2. Purchased $55,000 of inventory on account. 3. Sold inventory costing $2,000 for $16,000 on account. 4. Paid interest for $500. 5. Paid $8,000 for inventory purchased on account (from item2). 6. Collect $4,800 of accounts receivable (from item3). 7. Recognize Rent bill of this month for $6,500. 8. Paid Taxed for $770 *Prepare Income Statement, Retained Earnings Statement & Balance Sheet for XYZ Engineering Company
Assume the following: XYZ Engineering Supplies Company had the following transactions (Please, use the Chart of Accounts on the next page): 1. Issued capital stock for $100,000. 2. Purchased $55,000 of inventory on account. 3. Sold inventory costing $2,000 for $16,000 on account. 4. Paid interest for $500. 5. Paid $8,000 for inventory purchased on account (from item2). 6. Collect $4,800 of accounts receivable (from item3). 7. Recognize Rent bill of this month for $6,500. 8. Paid Taxed for $770 *Prepare Income Statement, Retained Earnings Statement & Balance Sheet for XYZ Engineering Company
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume the following: XYZ Engineering Supplies Company had the following
transactions (Please, use the Chart of Accounts on the next page):
1. Issued capital stock for $100,000.
2. Purchased $55,000 of inventory on account.
3. Sold inventory costing $2,000 for $16,000 on account.
4. Paid interest for $500.
5. Paid $8,000 for inventory purchased on account (from item2).
6. Collect $4,800 of
7. Recognize Rent bill of this month for $6,500.
8. Paid Taxed for $770
*Prepare Income Statement,
XYZ Engineering Company
Transcribed Image Text:Chart of Accounts
XYZ Engineering
Supplies Company
100 CASH
110 NOTES RECEIVABLE
120 ACCOUNTS RECEIVABLE
130 INVENTORY
140 BUILDING
200 ACCOUNTS PAYABLE
210 NOTES PAYABLE
300 OWNER'S EQUITY
400 SALES REVENUE
410 INTEREST REVENUE
500 COST OF GOODS SOLD
505 WAGES EXPENSE
510 INTEREST EXPENSE
520 RENT EXPENSE
530 UTILITIES EXPENSE
540 TAX EXPENSE
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