1. Issued capital stock for $50,000. 2. Purchased $25,000 of inventory on account. 3. Sold inventory costing $5,000 for $10,000 on account. 4. Paid $5,000 for inventory purchased on account (from item2). 5. Collect $4,800 of accounts receivable (from item3). 6. Paid salaries for $2,500. Required: A. Record the above transactions in General Journal (Journal Entries using the Cart of Accounts in the next slide). B. Record the transactions in General Ledger format (T- Accounts). C. Prepare a Trial Balance for XYZ Engineering Company.

1. Issued capital stock for $50,000. 2. Purchased $25,000 of inventory on account. 3. Sold inventory costing $5,000 for $10,000 on account. 4. Paid $5,000 for inventory purchased on account (from item2). 5. Collect $4,800 of accounts receivable (from item 3 ). 6. Paid salaries for $2,500. Required: A. Record the above transactions in General Journal (Journal Entries using the Cart of Accounts in the next slide). B. Record the transactions in General Ledger format (TAccounts). C. Prepare a Trial Balance for XYZ Engineering Company