XOS Corporation (XOS) sells accounting-related memorabilia at a small store. The company was organized and began operations on January 1, 2016. Events During January, 2016: 1. On January 1, the owner invested $100,000 cash in the company, receiving 1,000 shares of $2 par value common stock in exchange. 2. On January 1, XOS purchased furniture and fixtures for $30,000. Paid $5,000 cash down, and signed a promissory note with a 12% annual rate of interest for the balance of the purchase price. Note plus interest to be paid in 2 years. 3. On January 1, XOS paid two months rent in advance to mall owners for floor space, $6,000. 4. On January 1, XOS paid a one-year premium for liability and casualty insurance, $1,200. 5. During January, the company purchased merchandise inventory on account for $25,000. 6. During January, sales totaled $48,000 ($28,000 for cash and $20,000 on credit). The cost of the merchandise sold was $20,000. XOS uses a perpetual inventory system. 7. During January, the company paid wages totaling $3,000. 8. During January, payments on account to suppliers of inventory totaled $9,000. 9. During January, a customer ordered 100 custom-made t-shirts saying SOX ROX!-for delivery in February, 2016. XOS required payment in advance ($1,000) for the entire order. 10. During January, customers paid $10,000 to XOS for sales made on credit Additional Information: The furniture and fixtures have an expected useful life of 5 years and zero expected salvage value. XOS uses the straight-line method of depreciation. At January 31, employees have earned wages of $1,000 that will not be paid until February. Utilities charges for January are estimated to be $600. However, the utilities bill will not be received and paid until mid-February. Requirements *1. Prepare journal entries to record the ten transactions that occurred during January, and post related amounts to XOSs general ledger (T-Accounts). Then prepare an unadjusted trial balance at January 31. *2. Prepare any necessary adjusting journal entries at January 31, and post related amounts to the T-Accounts. Then prepare an adjusted trial balance at January 31. (Hint: There are 6 AJEs)

XOS Corporation First Day Review Problem XOS Corporation (XOS) sells accounting-related memorabilia at a small store. The company was organized and began operations on January 1, 2016. Events During January, 2016: 1. On January 1, the owner invested $100,000 cash in the company, receiving 1,000 shares of $2 par value common stock in exchange. 2. On January 1, XOS purchased furniture and fixtures for $30,000. Paid $5,000 cash down and signed a promissory note with a 12% annual rate of interest for the balance of the purchase price. Note plus interest to be paid in 2 years. 3. On January 1, XOS paid two months rent in advance to mall owners for floor space, $6,000. 4. On January 1, XOS paid a one-year premium for liability and casualty insurance, $1,200. 5. During January, the company purchased merchandise inventory on account for $25,000. 6. During January, sales totaled $48,000 ($28,000 for cash and $20,000 on credit). The cost of the merchandise sold was $20,000. XOS uses a perpetual inventory system. 7. During January, the company paid wages totaling $3,000. 8. During January, payments on account to suppliers of inventory totaled $9,000. 9. During January, a customer ordered 100 custom-made t-shirts saying SOX ROX!-for delivery in February, 2016. XOS required payment in advance ($1,000) for the entire order. 10. During January, customers paid $10,000 to XOS for sales made on credit Additional Information: The furniture and fixtures have an expected useful life of 5 years and zero expected salvage value. XOS uses the straight-line method of depreciation. At January 31, employees have earned wages of $1,000 that will not be paid until February. Utilities charges for January are estimated to be $600. However, the utilities bill will not be received and paid until mid-February. Requirements *1. Prepare journal entries to record the ten transactions that occurred during January, and post related amounts to XOS's general ledger (T-Accounts). Then prepare an unadjusted trial balance at January 31. *2. Prepare any necessary adjusting journal entries at January 31, and post related amounts to the T-Accounts. Then prepare an adjusted trial balance at January 31. (Hint: There are 6 AJE's)