Question 9

Financial Statement Preparation: UVW Inc. has the following transactions for January 2024:

• Issued capital stock for $100,000
• Purchased equipment for $50,000 cash
• Made sales of $70,000 (30% on credit)
• Paid salaries of $10,000
• Received $15,000 from customers for previous credit sales

Requirements:

1. Prepare the journal entries for each transaction.
2. Create a trial balance as of January 31, 2024.
3. Prepare the income statement for January 2024.
4. Prepare the balance sheet as of January 31, 2024.