Johnson & Johnson :

• Starting Balances as of September 1, 2023:
  • Cash: $90,000
  • Accounts Receivable: $40,000
  • Inventory: $80,000
  • Equipment: $200,000 (Accumulated Depreciation: $50,000)
  • Accounts Payable: $60,000
  • Bank Loan: $40,000
  • Capital: $260,000
• September 2023 Transactions:
  • Purchased additional inventory for $50,000 on account.
  • Paid $20,000 towards accounts payable.
  • Made sales of $150,000 (60% on credit), cost of goods sold $90,000.
  • Collected $50,000 from accounts receivable.
  • Paid $30,000 in operating expenses.
  • Paid $10,000 towards the bank loan.
  • Recorded depreciation expense of $6,000.

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 September 30, 2023.