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As a recently hired accountant for a small business, SMC , Inc., you are provided with last year s balance sheet, income statement, and post
As a recently hired accountant for a small business, SMC Inc., you are provided with last years balance sheet, income statement, and postclosing trial balance to familiarize yourself with the business. SMC Inc. Balance sheet December Assets $ Cash $ Accounts receivable $ Supplies $ Total assets $ Liabilities and stockholders equity Liabilities: Accounts payable $ Salaries payable $ Income taxes payable $ Total liabilities $ Stockholders equity: Capital stock shares outstanding $ Retained earnings $ Total stockholders equity $ Total liabilities and stockholders equity $ SMC Inc. Income statement For the year ended December Sales revenue $ Rent revenue $ Total revenue $ Less cost of goods sold $ Gross profit $ Less operating expense: Supplies expense $ Salaries expense $ Miscellaneous expense $ $ Income before taxes $ Less Income taxes $ Net income $ Earnings per share $ shares $ SMC Inc. Postclosing trial balance Cash $ Accounts receivable $ Inventory $ Supplies $ Accounts payable $ Salaries payable $ Income taxes payable $ Common stock $ Retained earnings $ Totals $ $ You are also given the following Information that summarizes the business activity for the current year, A Issued additional shares of common stock for $ cash on January st B Borrowed $ on March from Downtown Bank as a longterm loan. The interest rate on the loan is and interest for the year is payable on January C Paid $ cash on April to lease a building for one year. D Received $ on May from a tenant for one years rent. E Paid $ on June for a one year Insurance policy. F Purchased $ of supplies for cash on June th G Purchased inventory for $ on account on July H August sold inventory for $ on account; cost of the merchandise sold was $ I. Collected $ cash from customers accounts receivable on August th J September paid $ cash for inventories purchased earlier during the year. K September th paid $ for sales reps salaries, including $ owed at the beginning of L Dividends for $ were paid on October th M The income taxes payable for the year of were paid on November th N For adjusting entries, all prepaid expense are initially recorded as assets, and all unearned revenues are initially recorded as liabilities this is just informational O At yearend, $ worth of supplies are on hand. P At year end, an additional $ of sales salaries are owed, but have not yet been paid. Q Prepare and adjusting entry to recognize the taxes owed for The corporate tax rate is of the income before income taxes.
As a recently hired accountant for a small business, SMC Inc., you are provided with last years balance sheet, income statement, and postclosing trial balance to familiarize yourself with the business.
SMC Inc.
Balance sheet
December
Assets $
Cash $
Accounts receivable $
Supplies $
Total assets $
Liabilities and stockholders equity
Liabilities:
Accounts payable $
Salaries payable $
Income taxes payable $
Total liabilities $
Stockholders equity:
Capital stock shares outstanding $
Retained earnings $
Total stockholders equity $
Total liabilities and stockholders equity $
SMC Inc.
Income statement
For the year ended December
Sales revenue $
Rent revenue $
Total revenue $
Less cost of goods sold $
Gross profit $
Less operating expense:
Supplies expense $
Salaries expense $
Miscellaneous expense $ $
Income before taxes $
Less Income taxes $
Net income $
Earnings per share $ shares $
SMC Inc.
Postclosing trial balance
Cash $
Accounts receivable $
Inventory $
Supplies $
Accounts payable $
Salaries payable $
Income taxes payable $
Common stock $
Retained earnings $
Totals $ $
You are also given the following Information that summarizes the business activity for the current year,
A Issued additional shares of common stock for $ cash on January st
B Borrowed $ on March from Downtown Bank as a longterm loan. The interest rate on the loan is and interest for the year is payable on January
C Paid $ cash on April to lease a building for one year.
D Received $ on May from a tenant for one years rent.
E Paid $ on June for a one year Insurance policy.
F Purchased $ of supplies for cash on June th
G Purchased inventory for $ on account on July
H August sold inventory for $ on account; cost of the merchandise sold was $
I. Collected $ cash from customers accounts receivable on August th
J September paid $ cash for inventories purchased earlier during the year.
K September th paid $ for sales reps salaries, including $ owed at the beginning of
L Dividends for $ were paid on October th
M The income taxes payable for the year of were paid on November th
N For adjusting entries, all prepaid expense are initially recorded as assets, and all unearned revenues are initially recorded as liabilities this is just informational
O At yearend, $ worth of supplies are on hand.
P At year end, an additional $ of sales salaries are owed, but have not yet been paid.
Q Prepare and adjusting entry to recognize the taxes owed for The corporate tax rate is of the income before income taxes.
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