Ford Motor Company:

• Starting Balances as of January 1, 2025:
  • Cash: $100,000
  • Accounts Receivable: $60,000
  • Inventory: $120,000
  • Equipment: $300,000 (Accumulated Depreciation: $70,000)
  • Accounts Payable: $80,000
  • Bank Loan: $70,000
  • Capital: $430,000
• January 2025 Transactions:
  • Purchased additional inventory for $100,000 on account.
  • Paid $50,000 towards accounts payable.
  • Made sales of $250,000 (60% on credit), cost of goods sold $150,000.
  • Collected $90,000 from accounts receivable.
  • Paid $80,000 in operating expenses.
  • Paid $30,000 towards the bank loan.
  • Recorded depreciation expense of $8,000.

Requirements:

1. Journalize the transactions.
2. Post to the ledger accounts.
3. Prepare an adjusted trial balance.
4. Create the income statement and balance sheet for January 31, 2025.