Question: XOS Corporation (XOS) sells accounting-related memorabilia at a small store. The company was organized and began operations on January 1, 2016. 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.
3. On January 1, XOS paid two months rent in advance to mall owners for floor space, $6,000.
4. On January 1, XOS paid a one-year premium for liability and casualty insurance, $1,200.
5. During January, the company purchased merchandise inventory on account for $25,000.
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.
7. During January, the company paid wages totaling $3,000.
8. During January, payments on account to suppliers of inventory totaled $9,000.
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.
10. During January, customers paid $10,000 to XOS for sales made on credit Additional Information: ? The furniture and fixtures have an expected useful life of 5 years and zero expected salvage value. XOS uses the straight-line method of depreciation. ? At January 31, employees have earned wages of $1,000 that will not be paid until February. ? Utilities charges for January are estimated to be $600. However, the utilities bill will not be received and paid until mid-February.
Required: 1. Prepare a statement of Retained Earnings as of January 31st 2016.