Answered step by step
Verified Expert Solution
Question
1 Approved Answer
General Motors had the following balances as of June 1, 2025: Cash: $80,000 Accounts Receivable: $50,000 Inventory: $110,000 Equipment: $200,000 (Accumulated Depreciation: $40,000) Accounts Payable:
General Motors had the following balances as of June 1, 2025:
- Cash: $80,000
- Accounts Receivable: $50,000
- Inventory: $110,000
- Equipment: $200,000 (Accumulated Depreciation: $40,000)
- Accounts Payable: $70,000
- Bank Loan: $90,000
- Capital: $340,000
During June 2025, General Motors carried out the following transactions:
- Purchased inventory worth $80,000 on account.
- Paid $35,000 towards accounts payable.
- Sold inventory for $160,000 (cost of goods sold: $100,000).
- Collected $60,000 from accounts receivable.
- Paid $50,000 in operating expenses.
- Paid $25,000 towards the bank loan.
- Recorded depreciation expense of $6,000.
Requirements:
- Record the journal entries for the transactions.
- Post the transactions to the ledger accounts.
- Prepare a trial balance as of June 30, 2025.
- Prepare the income statement and balance sheet for the month ended June 30, 2025.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started