6,000 ACC 202 ACC Cycle set 2 This is to be prepared using pencil only on the provided templates and lined or graph paper. Submit scans or photos of your complete project in Canvas. Due by May 8. P&S Plumbing began operations on 1/1/2017. Their annual reporting period ends 12/31. The trial balance on 1/1/2019 follows: Account title Debit Credit Cash 6,000 Accounts receivable 1.000 Allowance for uncollectable accounts Supplies 13,000 Materials 7,000 Equipment 78,000 Accumulated Depreciation 8.000 Land Accounts payable Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (8,000 shares, $0.50 par value 4,000 Additional paid-in capital 80.000 Retained earnings T 17,000 Service revenue Wages expense Supplies expense Bad debt expense Interest expense Depreciation expense Income tax expense Misc. expenses Totals 110,000 110,000 Transaction during 2019: a $15,000 cash was borrowed on a five-year 8% note payable, dated 3/1/2019. b. $13,000 cash was paid for land. c. Earned $215,000 in sales revenues for 2019. $52,000 on account and the remainder in cash. d. Issued 4,000 additional shares of common stock for cash at $1 per share on 1/1/2019. miscellaneous expenses for 2019, $20,000 on credit and the rest paid in e. Incurred $114,000 in miscellaneous expenses for 2019, $20,000 cash. f. Collected $34,000 owned on account. gPurchased materials with $15,000 cash. h. Purchased $18,000 supplies on account. i. Paid $26,000 accounts payable. 3. Signed a $12,000 one-year service contract for work to begin on 2/1/2020. k. Declared and paid $25,000 in cash dividends. Adjusting entries: I. $18,000 in supplies remained on 12/31/2019. m. $10,000 depreciation on equipment. n. Interest accrued on notes payable in step a. o. $16,000 in wages earned but will not be paid until 1/3/2020. p. $11,000 in income taxes for 2019 will be paid in 2020. q. $2,000 was written off during the year. T. $2,000 of A/R is estimated to be uncollectable. The AfUA has a $1,000 debit balance. Required: 1. Set up T-accounts for the trial balance accounts and enter beginning balances. 2. Prepare journal entries for the 2019 transactions and post them to the ledger. 3. Prepare and post the adjusting entries. 4. Prepare an adjusted trial balance 5. Prepare the income statement, balance sheet, statement of cash flows, and statement of stockholder's equity in the correct order. 6. Journalize and post the closing entries. 7. Compute the following ratios for 2019 and briefly explain what they suggest about the company (round to 2 decimals). a. Current ratio b. Net profit margin C. Total asset turnover