XYZ Corporation

January, $2015$ Transactions

$1.$ January $1-$ Cash was contributed by the sole shareholder in the amount of $$50,000,$

in exchange for $1,000$ shares of common stock.

$2.$ January $5$ A $$100,000,5$ year, $12\%$ annual operating loan was obtained from the bank. Principal is due at the end of the term of the loan. Principal is paid on December $31$ annually.

$3.$ January $7-$ Equipment to operate the business was purchased, on credit, for $$15,000.$

$4.$ January $9$ Inventory was purchased for $$20,000,$ payable in $10$ days.

$5.$ January $9$ A building lease was signed for a $1$ year time period. A $$5,000$ security deposit was paid, along with rent of $$5,000$ for January and $$5,000$ for February.

$6.$ January $14$ Half of the inventory purchased on $1/9$ was sold for $$15,000$ on credit.

$7.$ January $15$ Wages were paid of $$2,000.$ Ignore payroll taxes

$8.$ January $18$ Additional inventory was purchased for $$40,000$ on credit.

$9.$ January $19$ The inventory purchased on $1/9$ was paid.

$10.$ January $21$ Utilities of $$1,000$ were paid in cash.

$11.$ January $22-$ The other half of the inventory purchased on $1/9$ was sold for $$20,000$ on credit.

$12.$ January $23$ A payment was received for the sale made on $1/14.$

$13.$ January $25$ The equipment that was purchased on $1/7$ was paid for.

$14.$ January $31$ One$-$months worth of depreciation was recorded on the equipment that was purchased. The equipment has a five$-$year life.

$15.$ Ones months$$ worth of interest is accrued on the loan from the bank.

$16.$ Estimated income taxes of $$650$ were paid for the month.

Required:

$1.$ Analyze all transactions and prepare appropriate journal entries.

$2.$ Post entries to the general ledger accounts $($no beginning balances $$ this is a new company.

$3.$ Prepare a trial balance.

$4.$ Prepare an income statement

$5.$ Prepare closing entry.

$6.$ Post closing entry to the general ledger accounts.

$7.$ Prepare a balance sheet.

$8.$ Prepare the statement of changes in shareholders equity.

$9.$ Prepare a statement of cash flow.