1. JackJoe's president, Elizabeth, decided the company needed more capital, so she sold more stock on December 20th for $25,000 2. JackJoe received payment to settle a $12,000 Account receivable on December 21. The terms of the receivable were 1/10, N 30 and the payment reflected that it was within the discount period. 3. JackJoe settled with cash a $18,000 Account payable with a vendor who sold JackJoe inventory, on December 22. The terms of the payable were 2/10, N 30 and the payment reflected that it was within the discount period. 4. JackJoe sold $26,000 of toy mice, on December 22. The terms of the sale were 1/10, N 30. The cost of the mice was $2,000. 5. The equipment was purchased near the beginning of the year. $10,000 of its cost expired this year. 6. Interest of $500 is owed on December 31, but has not been recorded. 7. Supplies on hand at year end were counted, and amount to $1,400. 8. December's rent of $1,000 is owed, but has not been recorded. (a) Set up a chart of accounts (5 points) (b) Set up a General Ledger and drop in the account balances (5 points) (c) Set up a General Journal (5 points) (d) Prepare the necessary entries through December 31, 20X4. (50 points) (e) Post journal entries and determine the adjusted balances of the accounts. (5 points) (f) Prepare the adjusted trial balance. (5 points) (g) Prepare the multi-step income statement, statement of retained earnings and classified balance sheet (20 points) (h) Calculate the current ratio and gross profit percentage (5 points)

Following is JackJoe's trial balance after the first year of operation, through December 20th. This trial balance does not reflect the transactions that occured during the last 11 days of the year or adjustments that are necessary, as described by the additional information. The Loan payable is due in 4 years. JackJoe, Inc. Trial Balance As of December 20, 20X4 Credits Cash Debits 18,400 12,000 6,790 15,000 27,000 24,000 32,500 Accounts receivable Supplies Inventory Equipment Accumulated depreciation Accounts payable Rent payable Loan payable Interest payable Capital stock Retained earnings Sales Sales - Discounts Cost of goods sold Rent expense Salaries expense Supplies expense Depreciation expense Interest expense Utilities expense 25,000 2,000 60,590 24,000 11,000 24,000 500 5,400 144.090 144.990 1. JackJoe's president, Elizabeth, decided the company needed more capital, so she sold more stock on December 20th for $25,000 2. Jackjoe received payment to settle a $12,000 Account receivable on December 21. The terms of the receivable were 1/10, N 30 and the payment reflected that it was within the discount period. 3. JackJoe settled with cash a $18,000 Account payable with a vendor who sold JackJoe inventory, on December 22. The terms of the payable were 2/10, N 30 and the payment reflected that it was within the discount period. 4. JackJoe sold $26,000 of toy mice, on December 22. The terms of the sale were 1/10, N 30. The cost of the mice was $2,000. 5. The equipment was purchased near the beginning of the year. $10,000 of its cost expired this year. 6. Interest of $500 is owed on December 31, but has not been recorded. 7. Supplies on hand at year end were counted, and amount to $1,400. 8. December's rent of $1,000 is owed, but has not been recorded. (a) Set up a chart of accounts (5 points) (b) Set up a General Ledger and drop in the account balances (5 points) (c) Set up a General Journal (5 points) (d) Prepare the necessary entries through December 31, 20X4. (50 points) (e) Post journal entries and determine the adjusted balances of the accounts. (5 points) (f) Prepare the adjusted trial balance. (5 points) (g) Prepare the multi-step income statement, statement of retained earnings and classified balance sheet (20 points) (h) Calculate the current ratio and gross profit percentage (5 points)