Assignment Summary

On a spreadsheet, perform the following tasks using the information from SMC, Inc. provided above: 1. Journalize the transactions for the current year, 2022, using the accounts listed on the financial statements and other appropriate accounts. 2. Set up T-accounts and enter the beginning balances from the December 31, 2021 post-closing trial balance for SMC. Post all current year journal entries to the T-accounts. 3. Journalize and post any necessary adjusting entries at the end of 2022. (Hint: Items b, c, d, e, o, p, and q require adjustment.) 4. After the adjusting entries are posted, prepare the following: an adjusted trial balance, an income statement, statement of retained earnings, and a balance sheet for 2022. The format of your statements should mirror those prepared by the company in 2021. 5. Journalize and post-closing entries for 2022 and prepare a post-closing trial balance. 6. Compute the Current Ratio and Debt to Total Equity Ratio for 2021 and 2022. 7. Interpretive Question: What is your overall assessment of the financial health of SMC, Inc.?

Course Project FINANCIAL REPORTING I SMC, Inc. Post-Closing Trial Balance December 31, 2021 You are also given the following information that summarizes the business activity for the current year,2022 a. Issued 10,000 additional shares of common stock for $45,000 cash on January 1st. b. Borrowed $25,000 on March 1, 2022, from Downtown Bank as a long-term loan. The interest rate on the Ioan is 5% and Interest for the year is payable on January 1,2023. c. Paid $18,000 cash on April1 to lease a building for one year. d. Received $7,500 on May 1 from a tenant for one year's rent. e. Paid $4,200 on June 1 for a one-year insurance policy. f. Purchased $3,500 of supplies for cash on June 15th. g. Purchased inventory for $125,000 on account on July 1. h. August 1, sold inventory for $185,000 on account; cost of the merchandise sold was $120,000. i. Collected $130,000 cash from customers' accounts receivable on August 20 th. j. September 1, Paid $95,000 cash for inventories purchased earlier during the year. k. September 20th paid $34,000 for sales reps' salaries, including $2,500 owed at the beginning of 2022. I. Dividends for $9,500 were paid on October 20 th. m. The income taxes payable for the year of 2021 were paid on November 15 th. n. For adjustingentries, all prepaid expenses are initially recorded as assets, and all unearned revenues are initially recorded as liabilities (this is just informational). o. At year-end, $1,050 worth of supplies are on hand. p. At year-end, an additional $7,200 of sales salaries are owed, but have not yet been paid. q. Prepare an adjusting entry to recognize the taxes owed for 2022 . The corporate tax rate is 21% of the income before income taxes. You are asked to do the following on an excel spreadsheet: 1. Journalize the transactionsfor the current year, 2022, using the chart of accounts listed on the excel spreadsheet provided for the project. 2. Set up T-accounts and enter the beginning balances from the December 31, 2021, post-closing trial balance for SMC. Post all current year journal entries to the T-accounts. 3. Journalize and post any necessary adjusting entries at the end of 2022 . (Hint: Items b, c, d, e, o, p, and q require adjustment.) 4. After the adjusting entries are posted, prepare an adjusted trial balance, an income statement, statement of retained earnings and a balance sheet for 2022. The format of your statements should mirror those prepared by the company in 2021. 5. Journalize and post-closing entries for 2022 and prepare a post-closing trial balance. 6. Compute the Current Ratio and Debt to Total Equity Ratio for 2021 and 2022 7. Interpretive Question: What is your overall assessment of the financial health of SMC, Inc.? Use the Word Document provided to answer this question. Course Project FINANCIAL REPORTING I SMC, Inc. Post-Closing Trial Balance December 31, 2021 You are also given the following information that summarizes the business activity for the current year,2022 a. Issued 10,000 additional shares of common stock for $45,000 cash on January 1st. b. Borrowed $25,000 on March 1, 2022, from Downtown Bank as a long-term loan. The interest rate on the Ioan is 5% and Interest for the year is payable on January 1,2023. c. Paid $18,000 cash on April1 to lease a building for one year. d. Received $7,500 on May 1 from a tenant for one year's rent. e. Paid $4,200 on June 1 for a one-year insurance policy. f. Purchased $3,500 of supplies for cash on June 15th. g. Purchased inventory for $125,000 on account on July 1. h. August 1, sold inventory for $185,000 on account; cost of the merchandise sold was $120,000. i. Collected $130,000 cash from customers' accounts receivable on August 20 th. j. September 1, Paid $95,000 cash for inventories purchased earlier during the year. k. September 20th paid $34,000 for sales reps' salaries, including $2,500 owed at the beginning of 2022. I. Dividends for $9,500 were paid on October 20 th. m. The income taxes payable for the year of 2021 were paid on November 15 th. n. For adjustingentries, all prepaid expenses are initially recorded as assets, and all unearned revenues are initially recorded as liabilities (this is just informational). o. At year-end, $1,050 worth of supplies are on hand. p. At year-end, an additional $7,200 of sales salaries are owed, but have not yet been paid. q. Prepare an adjusting entry to recognize the taxes owed for 2022 . The corporate tax rate is 21% of the income before income taxes. You are asked to do the following on an excel spreadsheet: 1. Journalize the transactionsfor the current year, 2022, using the chart of accounts listed on the excel spreadsheet provided for the project. 2. Set up T-accounts and enter the beginning balances from the December 31, 2021, post-closing trial balance for SMC. Post all current year journal entries to the T-accounts. 3. Journalize and post any necessary adjusting entries at the end of 2022 . (Hint: Items b, c, d, e, o, p, and q require adjustment.) 4. After the adjusting entries are posted, prepare an adjusted trial balance, an income statement, statement of retained earnings and a balance sheet for 2022. The format of your statements should mirror those prepared by the company in 2021. 5. Journalize and post-closing entries for 2022 and prepare a post-closing trial balance. 6. Compute the Current Ratio and Debt to Total Equity Ratio for 2021 and 2022 7. Interpretive Question: What is your overall assessment of the financial health of SMC, Inc.? Use the Word Document provided to answer this