Coca-Cola Co. 

• Starting Balances as of January 1, 2026:
  • Cash: $60,000
  • Accounts Receivable: $40,000
  • Inventory: $110,000
  • Equipment: $170,000 (Accumulated Depreciation: $35,000)
  • Accounts Payable: $80,000
  • Capital: $265,000
• January 2026 Transactions:
  • Purchased inventory for $80,000 on account.
  • Paid $35,000 towards accounts payable.
  • Sold inventory for $160,000 (cost of goods sold: $95,000).
  • Collected $70,000 from accounts receivable.
  • Paid $50,000 in operating expenses.
  • Recorded depreciation expense of $6,000.

Requirements:

1. Journalize the transactions.
2. Post to the ledger accounts.
3. Prepare an adjusted trial balance.

Prepare the income statement and balance sheet as of January 31, 2026.