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XYZ Inc. had the following transactions during July 2023: July 1: Issued 1,000 shares of common stock for $15,000. July 7: Purchased equipment for $7,000,
XYZ Inc. had the following transactions during July 2023:
- July 1: Issued 1,000 shares of common stock for $15,000.
- July 7: Purchased equipment for $7,000, paying $2,000 in cash and signing a note for the balance.
- July 15: Paid salaries of $1,500 to employees.
- July 20: Sold inventory costing $2,500 for $4,000 cash.
- July 31: Paid $600 for office rent.
Requirements:
- Record the journal entries for the transactions.
- Post the journal entries to T-accounts.
- Prepare a balance sheet as of July 31, 2023.
- Prepare a statement of cash flows for July 2023.
- Analyze the impact of the transactions on the company's liquidity.
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