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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:

  1. Purchased inventory worth $80,000 on account.
  2. Paid $35,000 towards accounts payable.
  3. Sold inventory for $160,000 (cost of goods sold: $100,000).
  4. Collected $60,000 from accounts receivable.
  5. Paid $50,000 in operating expenses.
  6. Paid $25,000 towards the bank loan.
  7. Recorded depreciation expense of $6,000.

Requirements:

  1. Record the journal entries for the transactions.
  2. Post the transactions to the ledger accounts.
  3. Prepare a trial balance as of June 30, 2025.
  4. Prepare the income statement and balance sheet for the month ended June 30, 2025.

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