Ford Motor Company:

• Starting Balances as of May 1, 2026:
  • Cash: $120,000
  • Accounts Receivable: $80,000
  • Inventory: $140,000
  • Equipment: $350,000 (Accumulated Depreciation: $80,000)
  • Accounts Payable: $100,000
  • Bank Loan: $90,000
  • Capital: $420,000
• May 2026 Transactions:
  • Purchased additional inventory for $120,000 on account.
  • Paid $60,000 towards accounts payable.
  • Made sales of $300,000 (60% on credit), cost of goods sold $180,000.
  • Collected $110,000 from accounts receivable.
  • Paid $100,000 in operating expenses.
  • Paid $40,000 towards the bank loan.
  • Recorded depreciation expense of $10,000.

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 May 31, 2026.