Xos Corporation Xos Sells Accounting Related Memorabilia At A Small Store The Co
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.
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.
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.
3. Prepare an unclassified Balance Sheet and Statement of Retained Earnings as of January 31, a single-step Income Statement, and a Statement of Cash Flows (Direct Method) for the month ended January 31.