Assume that ABC Limited had the following transactions for the month of January 2023:

January 1 - The company issued 10,000 shares of common stock for $10 per share.
January 10 - ABC purchased merchandise on account from XYZ Company for $50,000. The payment terms are 2/10, n/30.
January 15 - ABC returned $5,000 of the merchandise purchased from XYZ Company on January 10.
January 20 - ABC paid for the merchandise purchased from XYZ Company on January 10.
January 25 - ABC sold merchandise for $80,000 cash.
January 30 - ABC paid its employees' salaries of $25,000.
Required:

A) Record the above transactions in the accounting equation. (10 marks)

B) Prepare the journal entries for the above transactions. (10 marks)

C) Prepare the company's trial balance as of January 31, 2023. (10 marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below A Record the above transactions in the accounting equation Assets Liabilities Equity Asse... View the full answer