Acceunting in Action: CM Cerporation (CMC) CM Coeporation (CMC) was founded in 2000 by Eric Couner and Fil Martin. The compuny designs, installs, and services security wystems for mining companies. The founders, who describe themselves ass "entrepreneurial gecks," mer in a computer lab when they were iecragers and foend they had commen interestes in werking on security systems for critical industrics. In October 2021 , CMC hitvd yoe as an aceventing intem. Lately Ceener and Martia kave bees wokking with "radie frequency identificabon" (RFID) technology. They have develeped a detailed system designed to track inventery items aving RFID taps embediled imvisibly in peoducts. This technolopy bas aumerous inventory applications in maliple iadsutries. One of the most busic to take them), congpanics can casily track and fitad them. Coener and Martin lave wold their system to several mining conparties in the area. These companies have a number of povermment contracts that nequire extensive security systcms to protect sensitive dats from infiltrabion by ternoniss and oeturs. To date, CMC"s cash flow troen sales and services has adequately finded its eperation. CMC anticipates growth potential foe its products. Ax a revelt it is planeine so go to the market with a bev common stock bivec at the cad of 2022 . halasce from the end of 2021en an Excel specadshect. They ank you he prepare the financial statements, ie. the iscone statement, the statement of financial poeition, the stancment of cashelows and the statement of retained camiegs for ficcal year ending on Doe 31, 2021. You are alse provided the following iefermaties for adjestments peier to deving the beeks. 1. Wagrs earncd by couployees during Decemher and to be puid ie lanaary are K.35, 966 ; 2. On Joly 1 , a client paid CMC K250,000 in advance foe a year of coneshing services. 3. You discover that a product sale was made and recorded in late Decermber fire K12X, 600, the frodact had net yet been shipped. The cost of the peoduct was K.65, 742. Assame Accoestr Receivable was debited when the sale was first reconded 4. Allowance for doubtful accovants sboald be 10 s of the Acoocints Receivable 5. Bad debe cepenae bas been calculated to be K19, 500 bet has sot yer been roconded. 6. The Prepaid Expense account has a balance of K22, 774. This hulunce includes K16, 000 for a rwo-year incarance policy purchased ee lavaary 1,2021. 7. The buildings have a use life of 20 ycan and are deprociated using dooble doclining methodi inote that K\$0,000 of the accumulated depreciation selates to building) 8. Fevipment and furniture and furniture harve a useful life of 6 years with the residue value of Kio,000 these are depreciated usiag straight line method. 7. Interest espense accrued on its long-term liabilaties is K6.,000. 8. On December 15, CMC declarcd a dividend of K110, 000, as be paid ee lynary 15, 2022. 9. Income tax expense is K.200, 100 . Regwirnal: (a) Download the file named CMC2021 alk, whacb has the andelested trial bulanee. This file also contains an accounting "system" compriacd of a series of linked specadubects. The limkaps should chable the effects of all accounting entries (journal, adjusting, and clowing) to flow thoogh is wpresdibects for the income statement. statement of financial poution, and stakement of cash flowx. Check the lieks so make sure they are all righte. inventory system.) Entries" and (2) posting the closing critries in columns KM of "7rialBalDo2r" correct. noticed. In particular, you heard Mr. Martin tolking about 7 s profir natio for 2021 . You will make a point in the nsemo abovi why adjusting entries are necesury and whether the adfating entries led to a profit ratio lewer Acceunting in Action: CM Cerporation (CMC) CM Coeporation (CMC) was founded in 2000 by Eric Couner and Fil Martin. The compuny designs, installs, and services security wystems for mining companies. The founders, who describe themselves ass "entrepreneurial gecks," mer in a computer lab when they were iecragers and foend they had commen interestes in werking on security systems for critical industrics. In October 2021 , CMC hitvd yoe as an aceventing intem. Lately Ceener and Martia kave bees wokking with "radie frequency identificabon" (RFID) technology. They have develeped a detailed system designed to track inventery items aving RFID taps embediled imvisibly in peoducts. This technolopy bas aumerous inventory applications in maliple iadsutries. One of the most busic to take them), congpanics can casily track and fitad them. Coener and Martin lave wold their system to several mining conparties in the area. These companies have a number of povermment contracts that nequire extensive security systcms to protect sensitive dats from infiltrabion by ternoniss and oeturs. To date, CMC"s cash flow troen sales and services has adequately finded its eperation. CMC anticipates growth potential foe its products. Ax a revelt it is planeine so go to the market with a bev common stock bivec at the cad of 2022 . halasce from the end of 2021en an Excel specadshect. They ank you he prepare the financial statements, ie. the iscone statement, the statement of financial poeition, the stancment of cashelows and the statement of retained camiegs for ficcal year ending on Doe 31, 2021. You are alse provided the following iefermaties for adjestments peier to deving the beeks. 1. Wagrs earncd by couployees during Decemher and to be puid ie lanaary are K.35, 966 ; 2. On Joly 1 , a client paid CMC K250,000 in advance foe a year of coneshing services. 3. You discover that a product sale was made and recorded in late Decermber fire K12X, 600, the frodact had net yet been shipped. The cost of the peoduct was K.65, 742. Assame Accoestr Receivable was debited when the sale was first reconded 4. Allowance for doubtful accovants sboald be 10 s of the Acoocints Receivable 5. Bad debe cepenae bas been calculated to be K19, 500 bet has sot yer been roconded. 6. The Prepaid Expense account has a balance of K22, 774. This hulunce includes K16, 000 for a rwo-year incarance policy purchased ee lavaary 1,2021. 7. The buildings have a use life of 20 ycan and are deprociated using dooble doclining methodi inote that K\$0,000 of the accumulated depreciation selates to building) 8. Fevipment and furniture and furniture harve a useful life of 6 years with the residue value of Kio,000 these are depreciated usiag straight line method. 7. Interest espense accrued on its long-term liabilaties is K6.,000. 8. On December 15, CMC declarcd a dividend of K110, 000, as be paid ee lynary 15, 2022. 9. Income tax expense is K.200, 100 . Regwirnal: (a) Download the file named CMC2021 alk, whacb has the andelested trial bulanee. This file also contains an accounting "system" compriacd of a series of linked specadubects. The limkaps should chable the effects of all accounting entries (journal, adjusting, and clowing) to flow thoogh is wpresdibects for the income statement. statement of financial poution, and stakement of cash flowx. Check the lieks so make sure they are all righte. inventory system.) Entries" and (2) posting the closing critries in columns KM of "7rialBalDo2r" correct. noticed. In particular, you heard Mr. Martin tolking about 7 s profir natio for 2021 . You will make a point in the nsemo abovi why adjusting entries are necesury and whether the adfating entries led to a profit ratio lewer