After the adjusting entries are posted, prepare an adjusted trial balance, an income statement, statement of retained earnings and a balance sheet for 2018 (Hint: Income before income taxes should equal xxxx). The format of your statements should mirror those prepared by the company in 2017.

SMC, Inc Balance Sheet December 31, 2017 Assets Cash Accounts receivable Inventory Supplies Total asset $34,500 25,000 10.000 Liabilities and Stockholders' Equity Liabilities: Accounts payable Salaries payable Income taxes payable $12.000 1,000 $16,675 Total liabiliti Stockholders' equity: Capital stock (10,000 shares outstanding) Retained earnings $25,000 Total stockholders' equity Total liabilities and stockholders' equity