Nike, Inc. had the following transactions in December 2024:

• December 2: Purchased equipment for $60,000, paying $20,000 in cash and the remainder on account.
• December 8: Issued 5,000 shares of common stock for $150,000.
• December 14: Paid salaries of $30,000.
• December 20: Made credit sales of $45,000, cost of goods sold was $25,000.
• December 27: Paid $3,500 for advertising.

Requirements:

1. Prepare journal entries for each transaction.
2. Post the journal entries to the ledger accounts.
3. Prepare an unadjusted trial balance.
4. Adjust the accounts for any prepaid expenses.
5. Prepare the balance sheet as of December 31, 2024.