XYZ Ltd. had the following transactions during the month of February 2023: On February 1, the company
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Question:
XYZ Ltd. had the following transactions during the month of February 2023:
- On February 1, the company purchased inventory on credit for $20,000.
- On February 5, the company sold inventory on credit for $30,000, with a cost of goods sold of $15,000.
- On February 10, the company received payment of $10,000 from the sale made on February 5.
- On February 15, the company paid $8,000 to the supplier of the inventory purchased on February 1.
- On February 20, the company purchased equipment for $25,000 in cash.
- On February 25, the company paid $3,000 for advertising expenses.
Prepare the following financial statements for XYZ Ltd. for the month of February 2023:
- Income Statement
- Statement of Changes in Equity
- Balance Sheet
Assume that the company's beginning balance of cash and equity are $10,000 and $100,000, respectively.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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