217 COMPREHENSIVE PROBLEMS (CHAPTERS 1-4) Mecording Transactions (Including Adjusting and Closing Entries). Preparing a Complete Set of Financlal Statements, and Performing Ratio Analysis 2011. The antual reportine period ends, December 31. The trial balance on Jautury 1, 2012, follows: Tresasions duning 2012 follow: 2. Barrowed $12,000 enh on a five-year, 10 percent note payable, daned March 1, 2012. 7. Findased land for a future bulding sile; paid ersh, 512,000 . - Eirnal $308,000 in screaues for 2012 , including $2,000 on credit and the rest in cach. 18 Cellacied accoues receivable; $34,000. 1. Tachased other assets, $13,000 cash. this recounts payable, $19,000. Werthased sepplits on accouat for future wst, $23,000. 1. Desiatiod and paid cash dividends, $22,000. Thisor adjesting entriex: 1 Supplies counted on December 31, 2012, \$18,000. 1. Depreciation for the year an the equipment, $8,000. n. Interest accrued on notes payable (to be computed). o. Wages earned by employees since the December 24 payroll but not yet paid, $16,000. p. Income tax expense, $10,000, payable in 2013. Required: 1. Set up T-accounts for the accounts on the trial balance and enter beginning balances. 2. Prepare journal entries for transactions (a) through (k) and post them to the T-accounts. 3. Journalize and post the adjusting entries (l) through (p). 4. Prepare an income statement (including earnings per share). statement of stockholders' equity, balance sheet, and statement of cash flows. 5. Journalize and post the closing entry. 6. Compute the following ratios for 2012 and explain what the results suggest about the company: a. Current ratio b. Total asset turnover c. Net profit margin