You are the accountant for MNO Retailers, a newly established company specializing in selling consumer electronics. During its first month of operations, the company engaged in the following hypothetical transactions:

Investment by Owners: The owners invested $$150,000$ cash into the business in exchange for common stock.

Store Lease: Signed a $12-$month lease for a retail store, paying the first month's rent of $$8,000$ in advance.

Purchase of Goods: Purchased $3,000$ units of electronics at $$20$ per unit on account with terms $3/15,$ n$/45.$

Sale of Goods $($Cash$)$: Sold $500$ units of electronics for $$50$ per unit in cash. The cost per unit was $$20.$

Sale of Goods $($On Account$)$: Sold $400$ units of electronics for $$50$ per unit on account, terms $3/15,$ n$/45.$ The cost per unit was $$20.$

Purchase of Display Equipment: Bought display equipment for $$30,000,$ paying $$10,000$ in cash and the remaining $$20,000$ on a $2-$year note payable.

Utility Expenses: Paid $$2,000$ in cash for utilities.

Salaries Expense: Paid $$12,000$ in cash for employees' salaries.

Advertising Expense: Incurred $$5,000$ in advertising costs, paid in cash.

Collection from Accounts Receivable: Collected $$18,000$ from customers who were billed on account.

Payment to Suppliers: Paid $$57,800$ to suppliers for goods purchased, taking advantage of the early payment discount.

Prepaid Insurance: Paid $$2,500$ for a $6-$month insurance policy.

Accrued Salaries: Recorded $$4,500$ in salaries for work done during the last week of the month, to be paid next month.

Depreciation Expense: Recorded $$900$ depreciation for the month on display equipment.

Customer Return: Accepted the return of $10$ units of electronics sold on account. The goods were originally sold at $$50$ per unit, with a cost of $$20$ per unit.

Interest Expense: Accrued interest of $$100$ on the note payable.

Goods Write$-$down: Due to obsolescence, wrote down goods inventory by $$500.$

Deferred Revenue: Received $$4,500$ in advance for goods to be delivered next month.

Loan Payment: Paid $$600$ towards the principal of the note payable.

Corporate Taxes: Estimated and recorded income tax expense of $$4,000$ for the month.

Instructions:

General Journal Entries:

Record the above transactions in the general journal using Excel. For each transaction, specify the accounts debited and credited along with the amounts, including detailed calculations for inventory purchases and sales.

T$-$Accounts $($Ledger Entries$)$:

Post the journal entries to the appropriate T$-$accounts in Excel, showing the debits and credits for each account. Ensure that each T$-$account has a clear and accurate balance.

Trial Balance:

Prepare a trial balance in Excel as of the end of the month. Ensure that the total debits equal the total credits.

Income Statement:

Using the trial balance, prepare an income statement for XYZ Enterprises for the first month of operations in Excel. Include all revenues and expenses, such as cost of goods sold, depreciation, and corporate taxes.

Statement of Financial Position $($Balance Sheet$)$:

Prepare a statement of financial position as of the end of the month in Excel. Include all assets, liabilities, and equity accounts.

Additional Considerations:

Assume the company uses the perpetual inventory system and the accrual basis of accounting.

Round all figures to the nearest dollar.

Clearly label each section and ensure that all entries are neat and organized in the Excel spreadsheet.

Deliverables:

General journal entries $($Excel sheet$)$

T$-$accounts $($ledger in Excel$)$

Trial balance $($Excel sheet$)$

Income statement $($Excel sheet$)$

Statement of financial position $($Excel sheet$)$

Grading Criteria:

Accuracy of journal entries and ledger postings

Correctness of the trial balance

Completeness and clarity of the financial statements

Proper application of accounting principles and rules

Presentation and organization of the Excel workbook