ACC 202 ACC Cycle set This is to be prepared using pencil only on lined or graph paper. Turn in in class on the due date in Canvas. Notable Services annual reporting period ends 12/31. The trial balance at year end 12/31/2020 follows: Account title Debit Credit Cash 7,000 Accounts receivable 6,000 Allowance for doubtful accounts 1,000 Job supplies 14,000 Trucks 27,000 Equipment 81,000 Accumulated Depreciation 27,000 Land 14000 Accounts payable 12000 Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (16,000 shares, $0.25 par value) 4,000 Additional paid-in capital 75,000 Retained earnings 30,000 Dividends Service revenue Wages expense Supplies expense Bad debt expense Interest expense Depreciation expense Income tax expense Misc. expenses Totals 149,000 149,000 Transactions during 2021: a. Issued 4,000 additional shares of common stock for cash at $1 per share on 1/2/2021. b. Earned $190,000 in service revenues for 2021. $47,000 on account and the remainder was paid in cash. c. $17,000 cash was paid for land. d. Purchased another truck with $24,000 cash. e. Purchased $21,000 supplies on account. f. On 6/30/2021, $20,000 cash was borrowed on a four-year 10% note payable. g. Incurred $110,000 in miscellaneous expenses for 2020, $20,000 on credit and the rest paid in cash. h. Collected $34,000 owned on account. i. Paid $36,000 towards accounts payable. j. Signed a $27,000 one-year service contract for work to begin and be billed on 2/1/2022. k. Declared and paid $15,000 in cash dividends for 2021. Adjusting entries: a. Interest accrued on the notes payable in step f. b. $4,000 of bad debt was written off during the year. c. $15,000 in wages earned but will not be paid until 1/3/2022. d. $5,000 in supplies remained on 12/31/2021. e. $6,000 depreciation on equipment for 2021. f. $8,000 in income taxes for 2021 will be paid in 2022. g. $3,000 of the A/R is estimated to be uncollectable. Required: 1. Set up T-accounts for the trial balance accounts and enter beginning balances. 2. Prepare journal entries for the 2021 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 stockholders equity for the year 2021. 6. Journalize and post the closing entries. 7. Compute the following ratios for 2021 and briefly explain what they suggest about the company (round to 2 decimals). a. Current ratio b. Net profit margin c. Total asset turnover Check numbers: Adjusted trial balance total debits = $400,000 Total liabilities and equity should equal $173,000