awn King Company began operations on November 1, 2024. The main operating goal of the company is to sell high end
tractors. Customers may pay using cash or if appropriate, a credit is extended to customers with terms 2/10, n/30 .
The company uses the perpetual inventory method and a FIFO cost system. The company follows a calendar year, with all
adjusting entries made at the end of the accounting period, December 31. The company uses the straight-line depreciation
for all depreciable assets. The company has decided to use the Allowance method to account for uncollectible accounts. At
the end of the period, based on industry standards, the company believes 1% of the balance in accounts recievable will be
uncollectible. The company purchases tractors for resale only as such they carry them as inventory.
The company has two employees, one is a sales technician, salary of $4000 per month and the other employee is the office
manager with a salary of $6000 per month. Payroll is processed on the last day of the month, and paid on the first day of the
following month. This means the November 30 payroll with accrue into Salaries Payable and then be paid on Decemember 1.
Required:
1) Lawn King Company engaged in the following transactions for November and December. Record the following transactions on the Daily Transactions tab.
Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to receive full credit.

16 credit. 17 18 19 20 21 22 23 24 13 14 Required: 1) Lawn King Company engaged in the following transactions for November and December. Record the following transactions on the Dally 15 Transactions tab. Note: Place debits first, credits second but do NOT indent credits. If more than one debit or credit, please list in alphabetical order to receive full 1-Now The owner invested $130000 into the company in exchange for 5,000 shares of common stock 1-Nov The company purchased a computer system for $20000 and signed a one-year note for the entire balance. The note is due on November 1, 2025 and has an annual rate of interest of 3% 2.Nov Pald for two years rent on the office space, $18000. 3-Nov Purchased 10 tractors at a total cost of $1100 each for cash, FOB Destination 4-Nov Purchased $1700 of supplies on account, term /30. 15-Nov Purchased 12 tractors at a total cost of $1210 each on account, terms n/30, FOB Destination Shipping of $150 was paid to the shipping company by the appropriate party 17-Nov Paid for the supplies purchased on November 4. 18-Nov Paid for a two year insurance policy for the store, $12000. The policy was effective beginning December 1, 2024 20-Now Sold 17 tractors for $3200 each on account, terms 2/10, r/30, the company uses FIFO to find the cost of goods sold. The printers were shipped FOB Shipping Point. Record the sales revenue first 28-Nov Received payment in full on account from the November 20 sale. 29. Nov Pald for Novembet's utilities bill $1700 Prepared payroll for the month of November, the first payroll for the company. Record the Solares Expense entry first. The tax rates are as 30 Nov follows: Federal Income Tax Rate -15% NC State Income Tax Rate -10% FICA Tax Rate - 7,65% Unemployment Tax Rate -6% on the first $7000 of each employees earnings per year. 1-Dec Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January The company borrowed 560000 from Bank of America by signing a 10-year, 4% note. The note requires annual payments of S7397 beginning December 1, 2025 1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $70000 4-Dec Paid the amount due from the November 15 purchase 5-Dec Declared and paid S4000 in cash dividends to the stockholders of the company 6 Dec Purchased $1700 of supplies on account, term 1/30 7-Dec Purchased 20 tractors at a cost of $1331 each on account, terms 1/30, FOB Destination Sold 18 tractors for $3520 each on account, terms 2/10, 1/30, the company uses FIFO to find the cost of goods told Record the sales revenue Adjusting Entries 25 26 27 28 29 30 31 32 33 34 1-Dec) 35 36 37 38 39 40 Instructions Dally Transactions Ledger Adjusted Trial Balance Income Statement Equity Sta Ready H K L 31 34 11 fx A B D F G J 6 28-Nov Received payment in full on account from the November 20 sale. 7 29-Nov Paid for November's utilities bill $1700 Prepared payroll for the month of November, the first payroll for the company. Record the Salares Expense entry first. The tax rates are as 28 30-Nov follows: 29 Federal Income Tax Rate -15% 30 NC State Income Tax Rate -10% FICA Tax Rate -7.65% 32 Unemployment Tax Rate - 6% on the first $7000 of each employees earnings per year. 33 1-Dec Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January The company borrowed $60000 from Bank of America by signing a 10-year, 4% note. The note requires annual payments of $7397 beginning 1-Dec 35 December 1, 2025 36 1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Dellvery Truck was $70000. 4-Dec Pald the amount due from the November 15 purchase. 5-Dec Declared and pald $4000 in cash dividends to the stockholders of the company 6-Dec Purchased $1700 of supplies on account, term /30. 7-Dec Purchased 20 tractors at a cost of $1331 each on account, terms n/30, FOB Destination 15-Dec Sold 18 tractors for $3520 each on account, terms 2/10, 1/30, the company uses FIFO to find the cost of goods sold. Record the sales revenue first 18-Dec Paid for an ad in the local newspaper, $1700. 43 24-Dec Received $28160 payment for 8 tractors to be shipped on January 8, 2025. 31-Dec Prepared payroll for the month of December, the first payroll for the company. Record the Salaries Expense entry first. The tax rates are as follows: 45 Federal Income Tax Rate-15% NC State Income Tax Rate -10% RCA Tax Rate - 7,65% Unemployment Tax Rate -6% on the first $7000 of each employees earnings per year. 502) Post all the Daily Transactions to the ledger on the Ledger tab. 51 37 38 39 40 41 42 44 46 47 48 49 523) As of December 31, a search revealed the following information. Record any necessary adjusting entries for the year on the Adjusting Entries tab. 53 1 The computer equipment purchased on November 1 hasa 5 year life and an expected residual (salvage) value of $2000 54 2. Record any interest that has accrued on the note signed on November 1 for the computer system. 55 3. The rent paid on November 2 for two years beginning on November 1 56 4. The insurance policy purchased on November 18 is effective beginning December 1 Instructions Dally Transactions Adjusting Entries Ledger Adjusted Trial Balance Income Statement Ready Ecully C D E F G H Unemployment Tax Rate - 6% on the first $7000 of each employees earnings per year. 2) Post all the Daily Transactions to the Ledger on the Ledger tab. 5 3 8 9 3) As of December 31, a search revealed the following information. Record any necessary adjusting entries for the year on the Adjusting Entries tab. 1 The computer equipment purchased on November 1 has a 5-year life and an expected residual (salvage) value of $2000. 2 Record any interest that has accrued on the note signed on November 1 for the computer system 3 The rent paid on November 2 Is for two years beginning on November 1 4 The Insurance policy purchased on November 18 is effective beginning December 1. 5 Supplies on hand as of December 31 totaled $510. 6. The delivery truck purchased on December 1 has a 10 year life and an expected residual (salvage) value of $7000 7 Accrue the Interest, if needed, on the note signed on December 1. 50 8 Record any bad debt expense for the year ended December 31. If needed, round to the nearest dollar. 51 9 Utlites accrued but not yet paid as of December 31 totaled $1500. 634) Post all the Adjusting Entires to the Ledger on the Ledger tab. 645) Based on the account balances in the ledger, create an adjusted trial balance on the Adjusted Trial Balance tab. 656) Based on the adjusted trial balance, prepare a multi-step Income statement on the Income Statement tab. 667) Based on the adjusted trial balance, prepare the statement of stockholders' equity on the Equity Statement tab. 67 8) Based on the adjusted trial balance, prepare the balance sheet on the Balance Sheet tab. 9) Prepare the closing entries (DO NOT POST them to the ledger, just produce the entries), When Journaling, close the accounts in the order they 68 appear on the Trial Balance. Do one entry for revenue accounts, one for expense accounts and one for dividend accounts. 69 10) Calculate the ratios on the Ratios tab. 52 5%, 70 71 72 73 74 75 76 77 78 79 Daily Transactions Journal Page 1 2 Date Account DR CR 3 130,000 1-Nov Cash Common Stock 4 130,000 5 6 20,000 1-Nov Computer Equipment Notes Payable 7 20,000 8 9 2-Nov Prepaid Rent Cash 18,000 10 18,000 11 12 3-Nov Inventory Cash 11,000 13 11,000 14 15 1,700 4-Nov Supplies Accounts Payable 16 1,700 17 18 15-Nov Inventory Cash 14,520 19 14,520 20 21 17-Nov Accounts Payable Cash 1,700 22 + 1,700 23 24 18 Nov Prepaid Insurance Cash 12,000 25 12,000 26 27 20-Nov Accounts Receivable Sales Revenue 54,400 28 54,400 29 30 20-Nov Cost of Goods Sold 19,470 Instructions Daily Transactions Adjusting Entries Ledger A Adjusted Trial Bal D A B Adjusting Entries Journal Page 1 2 CR Account DR 3 1 4 5 6 N 7 8 9 3 10 11 12 4 13 14 15 5 16 17 18 6 19 20 21 7 22 23 24 8 25 26 27 9 28 29 30 Adjusted Trial Balance December 31, 2022 1 Debit Credit 2 Account Name 3 Cash 4 Accounts Receivable 5 Allowance for Uncollectible Accounts 6 Inventory 7 Supplies 8 Prepaid Rent 9 Prepaid Insurance 10 Computer Equipment 11 Accumulated Depreciation - Computer 12 Delivery Truck 13 Accumulated Depreciation - Delivery Truck 14 Accounts Payable 15 Interest Payable 16 Deferred Revenue 17 Salaries Payable 18 Notes Payable 19 Federal Income Tax Payable 20 NC State Income Tax Payable 21 FICA Tax Payable 22 Unemployment Tax Payable 23 Common Stock 24 Retained Earnings 25 Dividends 26 Sales Revenue 27 Service Revenue 28 Sales Discounts 29 Cost of Goods Sold 30 Advertising Expense 31 Utilities Expense Instructions Daily Transactions Adjusting Entries Ledger Adju Ready Lawn King Company Multiple-Step Income Statement For the Year Ended, December 31, 2024 3 4 5 6 7 8 Gross Profit 9 10 11 12 13 14 15 16 17 18 19 Total Operating Expenses 20 Operating Income 21 22 23 24 Net Income 25 26 fx D B Lawn King Company Statement of Stockholders' Equity For the Year Ended, December 31, 2024 Common Stock Retained Earnings Total Stockholders' Equity Balance, January 1 Balance, December 31 1 2 13 D D A 1 2 Lawn King Company Classified Balance Sheet At December 31, 2024 3 4 5 6 7 8 9 10 11 12 13 Total Current Assets 14 15 16 17 18 19 20 Total Assets 21 22 23 24 25 26 27 28 29 30 31 32 Total Current Liabilities 33 Instructions Daily Transactions Adjusting Entries A Ledger Adjusted Tri Ready A Closing Entries Journal Page 1 DR CR 2 Date Account 3 31-Dec 4 un 5 6 7 31-Dec 8 10 11 12 13 14 15 16 17 18 19 20 31-Dec 21 22 23 3 J B D A For each ratio, in the answer cell, use FORMULAS to calculate the ratio, 1 do not type in the answer. 2 Ratio Formula Answer 3 Current Ratio Current Assets/Current Liabilities Use A Formula 4 Debt to Equity Total Liabilities/Stockholders Equity Use A Formula 5 Gross profit ratio GP/Net Sales Use A Formula 6 Profit margin Net income/Net sales Use A Formula 7 Return on Assets Net income/Average total assets Use A Formula 8 9 10