04. You are the new accountant for James Carmen Lid., a merchandising company. The company has provided you with the following unadjusted trial balance as of December 31, 2019 James Carmen Ltd Adjusted Trial Balance at December 31, 2019 Credit Debit $ 12,000 $ 34,000 101.000 10,000 130,000 90,000 15,000 Account Title Cash Accounts payable Accounts receivable Accumulated depreciation, equipment Cost of sales Contributed capital (30,000 shares) Deferred revenue Equipment, at cost Other operating expense Merchandise inventory Note receivable, due July 31, 2021 Prepaid rent Prepaid insurance Rent expense Retained earnings, Jan.1/18 Sales revenue Wages expense 80,000 8,500 22,000 25,000 2.500 2,000 28,000 72,000 302,000 112,000 $ $23,000 $ $23,000 Additional information is stated below. Journal entries related to these transactions have not yet been recorded Equipment has a useful life of 15 years. Depreciation expense for 2019 is estimated at 55,300 Wages owed to employees totalled $5,200 as at December 31, 2019. The note receivable was obtained by James Carmen Ltd. on August 1, 2019. The note carries an annual interest rate of 7% that is payable at maturity The balance in prepaid insurance represents a payment on November 1, 2019. for a full year of insurance beginning on that date. Cash dividends of 0.50 per share were declared on December 31, 2019 and will be paid on January 15, 2020 The company is subject to an income tax rate of 20%. Income taxes are due on March 15, 2020 Required: 1. Prepare the adjusting journal entries as at December 31, 2019 for the items listed above. Create new accounts as needed. 2. Prepare a multiple-step statement of earnings for the year ended December 31, 2019. James Carmen Ltd. did not issue or repurchase any shares during 2019. 3. Prepare a classified statement of financial position as at December 31, 2019. 4. Prepare the closing entries at December 31, 2019. 5. Compute the net profit margin ratio and total asset turnover for 2019, and explain the meaning of each ratio. Total assets equalled $180,000 at January 1, 2019