The accounts for Happy Inc. as of Dec. $31,2023,$ Inc. are shown below:Cash$30,000$ A$/$R$40,500$ Allow. For Bad Debts $500$Supplies $1,500$Inventory$60,000$ Notes Receivable$20,000$Office Equipment$190,000$Accum. Dep. Off. Equip$\mathrm{.}51,000$ A$/$P$31,000$ LT Note Payable$70,000$Wages Payable$8,000$ Utilities Payable $7,000$Deferred Sales Revenue $2,000$Property Taxes Payable$6,500$ Capital Stock, $$10$ par$40,000$Treasury Stock $2,000$Retained Earnings$81,650$ Sales$322,000$Sales Returns $7,500$Sales Discounts $4,500$Cost of Goods Sold$206,250$Selling Expenses$45,000$ Office Expenses$6,000$ Insurance Expense $3,000$Supplies Expense $5,000$Taxes Real Estate and Payroll $7,200$Interest Revenue$12,000$Miscellaneous Expense $3,200$ Additional information for $2022$ adjusting entries:a$)$ Review, Inc. uses a perpetual inventory system b$)$ An aging of A$/$R calculates uncollectible accounts of $$750.$ c$)$ Equipment is depreciated at $10\%$ per year, no depreciation has been recorded for $2022$ to date. d$)$ In order to boost their $2022$ earnings; a sale of $$6400$ for January, $2023$ was recorded in $2022$; goods cost $$4000.$ e$)2022$ interest on the note payable has not been accrued. The $5$ year note was issued on March $1,2022,$ and has a simple interest rate of $12\%.$ Principal and interest are due upon maturity. f$)$ The balance in Insurance Expense represents $$3,000$ that was paid for a $1-$year policy on October $1.$ The policy went into effect on October $1.$ g$)$ $$800$ of supplies remained on hand on December $31,2022.$ h$)$ Review, Inc. received $$2000$ from a customer in December, $2022$ for goods to be delivered in Jan. $2023.$ h$)$ Dividends totaling $$7,800$ were declared on December $25.$ The dividends will not be paid until January $15,2023.$ No entry was made. i$)$ On March $1,2022,$ the company lent a supplier $$20,000,$ a note was signed requiring principal and interest at $6\%$ to be paid on February $28,2023.$ j$)$ Income taxes are estimated to be $20\%$ of the income before income taxes. k$)$ There are $50,000$ shares authorized. Add accounts as necessary.

$1)$ Prepare a balanced trial balance Journalize the adjusting entries for $2022.$ Prepare a multi$-$step income statement, statement of retained earnings and classified balance sheet for $2022.$ Journalize the closing entries. Calculate the current ratio and comment on the strength$/$weakness of this ratio. 

Answer rating: 100% (QA)

Balanced Trial Balance I have organized the provided accounts and their balances below Account Title Balance Cash 30000 Accounts Receivable 40500 Allo... View the full answer