Company Information & Summary of Significant Account Policies Lawn 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 S4000 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 I. Required: 1) Lawn King Company engaged in the following transactions for November and December. Record the following transactions on the Transactions tab. Note: Place debits first, credits second but do NOT indent eredits. If more than one debit or credit, please list in alphabetical order to M N 28 29 30 31 32 33 34 B F G H Prepared payroll for the month of November, the first payroll for the company. Record the Solares Expense entry first. The tax 30-Nov rates are as 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. 35 36 31 38 39 40 1-Dec Paid the employees the amount due to them from the November 30 payroll taxes will be paid in January 1-Dec The company borrowed $60000 from Bank of America by signing a 10 year, 4% note. The note requires annual payments of $7397 beginning December 1, 2025 1-Dec. Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was S7000XX 4-Dec Paid the amount doe from the November 15 purchase S-Dec Declared and paid $4000 in cash dividends to the stockholders of the company 6-Dec Purchased $1700 of supplies on account, term n/30 7.Dec Purchased 20 tractors at a cost of $1331 each on account, terms n/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 sold Record the 15-Dec sales revenue first. 18-Dec Paid for an ad in the local newspaper, $1700 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: Federal Income Tax Rate -15% Nate Income TV1 Instruction Day Transactions Austings Ledger Adusted Thala income Start Equity Statement 42 43 45 45 46 31 1.Dec Bald for and the $1700 Melecehd 100 part for othed on 25 11. Dec Prepared parell for the month of December, the first paroll for the company Record the Series Expenses. The tax 4 rates are as follows Federal income Theate1 NC income Tax Rate-10 FICAT Rate 7.05 Unemployment Tae late - on the les 7000 at each employees earnings per year 502) Pout all the Daily Transactions to the Ledger on the Ledger tal 31 As of December 31, a search revealed the following information Record any necessary adjusting entries for the year on the Adjusting 2 Entries tab. 1 The computer equipment purchased on November 1hos 15 year bile and in repected residual falso) loe of 52000, 2 Record any interest that has accrued on the noted on November for the computer when The tent paid on November 2 is for two years beginning on November 1 The insurance policy purchased on November 18 is effective beginning December 5 Supplies on hand as of December 31 fotled 5510 38 6. The delivery truck purchased on December 1 has a 10 year Me and an expected retail sale) value of 57000 7 Acene the interest, if needed, on the noted on December 1 8 Record any bad debt pense for the year ended December 31. of needed, round to the nearest dollar 9 Utles accrued but not yet paid as of December 31 totaled $1500 5 56 to 61 Instruction . Audac Com 10 NOV 7 1 4 1-Dec 31 1-Dec 44 55 1 Dec 37 53 4-Dec 40 00 5-Dec Cash Didends 4.000 Cash Daily Transactions Ledge Astages True Same home Ajusting les journal DR CR Ae 1 2 1 e 11 1 4 14 5 9