Johnson & Johnson:

• Starting Balances as of May 1, 2024:
  • Cash: $100,000
  • Accounts Receivable: $45,000
  • Inventory: $90,000
  • Equipment: $220,000 (Accumulated Depreciation: $60,000)
  • Accounts Payable: $70,000
  • Bank Loan: $50,000
  • Capital: $275,000
• May 2024 Transactions:
  • Purchased additional inventory for $60,000 on account.
  • Paid $25,000 towards accounts payable.
  • Made sales of $180,000 (60% on credit), cost of goods sold $110,000.
  • Collected $70,000 from accounts receivable.
  • Paid $40,000 in operating expenses.
  • Paid $15,000 towards the bank loan.
  • Recorded depreciation expense of $5,000.

Requirements:

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

Create the income statement and balance sheet for May 31, 2024