Johnsons Electronics Store, owned by Ms. Johnson, recently conducted a sale event to clear out old inventory and generate revenue. The following transactions occurred during and after the sale:

1. Sept 1, 2023: Beginning inventory consisted of 50 units of electronic gadgets, each costing $100.

2. September 2, 2023: At the start of the sale, 30 gadgets were sold for $200 each.

3. Sept 6, 2023: 20 gadgets were sold on credit to a loyal customer, Mr. Anderson, for a total of $4,000. The terms were net 30 days.

4. Oct 15, 2023: Unfortunately, Mr. Anderson could not pay his debt within the credit period. Ms. Johnson writes off 10%, since Mr. Anderson is a loyal customer. Mr. Anderson agrees to pay the remaining 90% in the coming few days.

5. Oct 17, 2023: True to his promise, Mr. Anderson pays the remaining balance of his purchase on his Visa credit card. Visa charges the merchant a 5% on Mr. Andersons payment.

6. Oct 31, 2023: Ms. Johnson purchased new inventory of 40 gadgets at a cost of $120 each. As Ms. Johnson has a VIP account with her supplier, she is able to purchase on credit. The terms are net 30 days.

7. November 1, 2023: Johnsons Electronics Store acquired a new computer system for the business office, costing $2,000. The computer system is expected to have a useful life of 5 years and a salvage value of $500. Ms. Johnson decided to use straight-line depreciation.

8. November 15, 2023: Ms. Johnson pays for her recent inventory order (#6) in full.

9. December 31, 2023: Ms. Johnson asks her accountant to close the books for the accounting cycle.

TASKS:

a) Please record all journal entries & adjusting entries in the order that they occur. The company uses a FIFO perpetual inventory system.

b) Please compile a Trial Balance and an Income Statement