The next question is based on XYZ’s T account..
debits(cash): bal: 1/1 225,000; collections from customers 60,000 ; common stock issued 20,000 ; five year bank loan 75,000 ; sale of used van 10,000 ;bal 12/31: 223,000
credits(cash): 44000 payment to suppliers; 13,000 purchase of machinery; 100,000 salaries paid; 4,000 dividends paid; 5,000 interest payment; 1,000 garage rental payment
ans options: total merchandise sales were 60,000
total merchandise purchases were 44,000
xyz issued 75,000 of debt
xyz did not record any tax expenses
