Q1: Company XYZ has a December 31 year end. The following transactions occurred during the year 2023: 1. Inventory was purchased for $39,700 on account. 2. Goods with selling prices totalling $80,000 were sold, all on account. These goods cost XYZ Ltd. $38,200. 3. The company received $78,400 from customers as payments on accounts receivable. 4. The company paid $37,300 to suppliers that were its accounts payable. 5. New equipment was purchased for $15,000 cash during the year. 6. Employees earned wages for the year totalling $20,500. 7. Depreciation expense on the company's equipment totalled $2,000 for the year. Requirement: i. Analyze the effects of each of the seven transactions on the company's accounts. ii. What is the net income/net loss for the year ended December 31, 2024?

Q1: Company XYZ has a December 31 year end. The following transactions occurred during the year 2023: 1. Inventory was purchased for $39,700 on account. 2. Goods with selling prices totalling $80,000 were sold, all on account. These goods cost XYZ Ltd. $38,200. 3. The company received $78,400 from customers as payments on accounts receivable. 4. The company paid $37,300 to suppliers that were its accounts payable. 5. New equipment was purchased for $15,000 cash during the year. 6. Employees earned wages for the year totalling $20,500. 7. Depreciation expense on the company's equipment totalled $2,000 for the year. Requirement: i. Analyze the effects of each of the seven transactions on the company's accounts. ii. What is the net income/net loss for the year ended December 31, 2024?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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