Use the information about Majestic Trucking Inc. (Majestic) provided in Problem P3-20 to do the following:
a. Prepare all necessary transactional journal entries for the year ended December 31, 2017. Provide an explanation for each journal entry.
b. Prepare T-accounts and post each journal entry to the appropriate T-accounts.
c. Prepare and post adjusting journal entries to the appropriate T-accounts.
d. Prepare a trial balance as of December 31, 2017.
e. Prepare a balance sheet for Majestic as of December 31, 2017 and an income statement and statement of retained earnings for the year ended December 31, 2017.
f. Prepare the closing journal entry and post the closing entry to the appropriate T-accounts.
g. Prepare a trial balance as of December 31, 2017, after the closing entry has been prepared.
h. The North American economy is booming and there is a lot of work for ship ping companies like Majestic. However, the competition is fierce and success and failure are defined by how efficient a company is and how well it services its customers. Majestic's managers would like to upgrade its fleet by adding two new trucks and making significant improvements to its existing vehicles. Based on your examination of the statements, what can you tell about Majestic that would be useful to your decision to lend it $125,000? Also, list five questions you might ask Majestic's management that would help you use the financial statements more effectively.