XYZ Limited began operations on January 1, 2024. The following transactions occurred during its first month of business: The owner invested $120,000 cas

Question (Financial Accounting):

XYZ Limited began operations on January 1, 2024. The following transactions occurred during its first month of business:

1. The owner invested $120,000 cash into the business.
    
2. Purchased equipment worth $60,000, paying $20,000 in cash and the balance on credit.
    
3. Purchased inventory costing $25,000 on credit.
    
4. Made cash sales of $30,000 (the cost of goods sold was $15,000).
    
5. Paid salaries of $5,000 and utilities of $2,000.
    
6. Paid $10,000 of the amount owed to suppliers.
    
7. Recorded depreciation on equipment at 10% per annum (use straight-line method, assume no salvage value).
    

Required:

1. Prepare journal entries for the above transactions.
    
2. Post the transactions to the ledger accounts.
    
3. Prepare a trial balance as of January 31, 2024.
    
4. Prepare an Income Statement and Statement of Financial Position for the month ended January 31, 2024.