Required: Prepare a trial balance

17. Mr. XYZ owns and manages a service company, which had the following trial balance on December 31, 2011 (the end of its fiscal year).

XYZ, INC.

Trial balance

December 31, 2011

	Debit	Credit
Cash	$10,000
Accounts receivable	$15,000
Equipment	$25,000
Accounts payable		$20,000
Tax payable		$2,000
Interest payable		$2,000
Share capital		$26,000
Total	$50,000	$50,000

Summarized transactions for January 2012 were as follows:
January 1.	Shareholders invested $125,000 cash in the business in exchange for ordinary shares. (shar capital ordinary)
January 2.	A company performed services on account. The services were for $30,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September.
January 3.	The company purchased $50,000 of office equipment on account.
January 5.	Cash collected from customers in payment of accounts receivable $10,000.
January 6.	The company declared and paid $42,000 cash dividends.
January 30.	The company paid its employees a monthly salary of $30,000.

Instructions

1. Prepare journal entries to record of the January transactions. (Omit explanations.
2. Post the journal entries to the accounts in the ledger.
3. Prepare a trial balance as of January 31, 2012.