Create the adjusted trial balance and the financial statements for So Smart Company (SSC) for the...

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Create the adjusted trial balance and the financial statements for So Smart Company (SSC) for the fiscal year ending December 31, 2019. SSC is a merchandiser that sells calculators, computers, pencils and giant erasers (an accounting major's best friend) and is organized as a sole proprietorship. The owner is Bobbie Smart, otherwise known as B Smart. Project Requirements: SSC employs the accrual method of accounting: The adjusted trial balance and the financial statements (Balance Sheet, Income Statement, and Statement of Owner's Equity) must all be prepared utilizing proper accounting formatting (see the Principles I section of your textbook) and proper Excel formatting (watch the formatting videos posted on our course D2L shell); B Smart opened the business on January 1, 2019 with an investment of $100,000; The Cash account balance at the close of business on December 31, 2019 was $20,000 (do not attempt to recreate this balance - just happily accept it); SSC issued a $25,000, 16-month, 4% note on October 1, 2019 - principal and total interest incurred are due at maturity; this is the only interest-bearing debt SSC entered into during 2019; The company purchased only two long-term, depreciable assets during 2019: a vehicle for $45,000 and a computer for $3,250 and depreciation was recognized in the amount of $5,000 on the vehicle and $750 on the computer - both of these assets will be in service throughout 2020; On January 1, SSC paid $1,800 for an 18-month insurance policy and debited the Prepaid Insurance account for the entire amount - no insurance expense had yet been recognized at the start of business on December 31; SSC recognized bad debt expense on December 31 in the amount of $2,000, which was 2% of the outstanding accounts receivable balance (allowance for doubtful accounts method is used – not the direct method); Several qualifying customers took advantage of the 2% 10, net 30 payment terms during 2019, resulting in a Sales Discount account balance of $4,900; B Smart withdrew a total of $23,500 in cash during 2019 from SSC for personal use; In addition to all of the account balances resulting from information provided in the previous bullet points, the general ledger held the following account balances after adjusting journal entries were recorded and posted: Accounts Payable Cost of goods sold 1,125 250,000 Land 13,275 Merchandise Inventory Rent Expense Sales 18,250 21,000 400,000 Supplies Supplies Expense Wages Expense Wages Payable 865 1,320 23,450 485 The required financial statements for this project (listed in alphabetical order - not the order in wh prepare them) are: > Balance Sheet- utilize classified balance sheet formatting > Income Statement- use multi-step income statement formatting > Statement of Owner's Equity Create the adjusted trial balance and the financial statements for So Smart Company (SSC) for the fiscal year ending December 31, 2019. SSC is a merchandiser that sells calculators, computers, pencils and giant erasers (an accounting major's best friend) and is organized as a sole proprietorship. The owner is Bobbie Smart, otherwise known as B Smart. Project Requirements: SSC employs the accrual method of accounting: The adjusted trial balance and the financial statements (Balance Sheet, Income Statement, and Statement of Owner's Equity) must all be prepared utilizing proper accounting formatting (see the Principles I section of your textbook) and proper Excel formatting (watch the formatting videos posted on our course D2L shell); B Smart opened the business on January 1, 2019 with an investment of $100,000; The Cash account balance at the close of business on December 31, 2019 was $20,000 (do not attempt to recreate this balance - just happily accept it); SSC issued a $25,000, 16-month, 4% note on October 1, 2019 - principal and total interest incurred are due at maturity; this is the only interest-bearing debt SSC entered into during 2019; The company purchased only two long-term, depreciable assets during 2019: a vehicle for $45,000 and a computer for $3,250 and depreciation was recognized in the amount of $5,000 on the vehicle and $750 on the computer - both of these assets will be in service throughout 2020; On January 1, SSC paid $1,800 for an 18-month insurance policy and debited the Prepaid Insurance account for the entire amount - no insurance expense had yet been recognized at the start of business on December 31; SSC recognized bad debt expense on December 31 in the amount of $2,000, which was 2% of the outstanding accounts receivable balance (allowance for doubtful accounts method is used – not the direct method); Several qualifying customers took advantage of the 2% 10, net 30 payment terms during 2019, resulting in a Sales Discount account balance of $4,900; B Smart withdrew a total of $23,500 in cash during 2019 from SSC for personal use; In addition to all of the account balances resulting from information provided in the previous bullet points, the general ledger held the following account balances after adjusting journal entries were recorded and posted: Accounts Payable Cost of goods sold 1,125 250,000 Land 13,275 Merchandise Inventory Rent Expense Sales 18,250 21,000 400,000 Supplies Supplies Expense Wages Expense Wages Payable 865 1,320 23,450 485 The required financial statements for this project (listed in alphabetical order - not the order in wh prepare them) are: > Balance Sheet- utilize classified balance sheet formatting > Income Statement- use multi-step income statement formatting > Statement of Owner's Equity

Answer rating: 100% (QA)

Trial Balance as on 31 Dec 2019 Name of Account Debit Credit Cash 20000 Capital 100000 4 Notes Payable 25000 Cost of goods sold 250000 Vehicle 45000 S... View the full answer