Company Information & Summary of Significant Account Policies Macon Machines Company began operations on November 1, 2024. The main operating goal of the company is to sell high end robots. Customers may pay using cash or if appropriate, credit is extended to customers with terms 3/15, 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 2% of the balance in accounts recievable will be uncollectible. The company purchases robots for resale only as such they carry them as inventory. The company has two employees, one is a sales technician, salary of $9000 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) Make sure your student ID is correct, this will change the information. Macon Machines 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. Round to the penny unless otherwise noted. 1-Nov The owner invested $880000 into the company in exchange for 5,000 shares of common stock. 1-Nov The company purchased a computer system for $50000 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 Paid for two years rent on the office space, $17600. 3-Nov Purchased 10 robots at a total cost of $8000 each for cash, FOB Destination. 4-Nov Purchased $4000 of supplies on account, term n/30. 15-Nov Purchased 12 robots at a total cost of $8800 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, $6000. The policy was effective beginning December 1, 2024. 20-Nov Sold 15 robots for $11500 each on account, terms 3/15, n/30, the company uses FIFO to find the cost of goods sold. The robots 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 Paid for November's utilities bill $8800. Prepared payroll for the month of November, the first payroll for the company. Record the Salares Expense entry first. The tax rates are as 30-Nov follows: Federal Income Tax Rate - 15%. Air State Income Tax Rate 100/ Ent Com Prod H J K L M N 7-Dec Purchased 20 robots at a cost of $9680 each on account, terms n/30, FOB Destination. 15-Dec Sold 22 robots for $12650 each on account, terms 2/10, n/30, FOB Shipping Point, 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, $8000. 24-Dec Received $101200 payment for 8 robots 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%. 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. 2) Post all the Daily Transactions to the Ledger on the Ledger tab. 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 $5000. 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 $1760. 6 The delivery truck purchased on December 1 has a 10-year life and an expected residual (salvage) value of $6000. 7 Accrue the interest, if needed, on the note signed on December 1. 8 Record any bad debt expense for the year ended December 31. Round answer to the whole dollar if needed. 9 Utilites accrued but not yet paid as of December 31 totaled $8600. 4) Post all the Adjusting Entires to the Ledger on the Ledger tab. 5) Based on the account balances in the ledger, create an adjusted trial balance on the Adjusted Trial Balance tab. 6) Based on the adjusted trial balance, prepare a multi-step income statement on the Income Statement tab. 7) Based on the adjusted trial balance, prepare the statement of stockholders' equity on the Equity Statement tab. 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 appear on the Trial Balance. Do one entry for revenue accounts, one for expense accounts and one for dividend accounts. 10) Calculate the ratios on the Ratios tab. H J General Ledger (T-Account) Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Supplies Prepaid Rent Prepaid Insurance K L Accumulated Depreciation - Computer Equipment Computer Delivery Truck Accumulated Depreciation - Delivery Truck Accounts Payable Interest Payable Deferred Revenue Salaries Payable 3 9 0 Notes Payable Federal Income Tax Payable NC State Income Tax Payable FICA Tax Payable 1 2 3 4 5 -6 67 Unemployment Tax Payable. Common Stock Retained Earnings Cash Dividends 38 39 40 41 42 Sales Revenue Service Revenue Sales Discounts Cost of Goods Sold 43 44 45 46 47 48 Advertising Expense Utilities Expense Salaries Expense 49 + Depreciation Expense 50 51 52 53 Rent Expense Interest Expense Supplies Expense Bad Debt Expense 54 55 K M Sales Revenue Service Revenue Sales Discounts Cost of Goods Sold K L M Advertising Expense Utilities Expense Salaries Expense Depreciation Expense Rent Expense Interest Expense Supplies Expense Bad Debt Expense Payroll Tax Expense Insurance Expense NOTE: Three accounts have check figures. After posting the Daily Transactions, your Castccounts Receivable, and Cost of Goods Sold balance will show GREEN if it is correct. 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. 1-Dec The company borrowed $55000 from Bank of America by signing a 15-year, 6% note. The note requires annual payments of $5663 beginning December 1, 2025. 1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $60000. 4-Dec Paid the amount due from the November 15 purchase. 5-Dec Declared and paid $2000 in cash dividends to the stockholders of the company. 6-Dec Purchased $4800 of supplies on account, term n/30. 7-Dec Purchased 20 robots at cost of $9680 each on account, terms n/30, FOB Destination. 15-Dec Sold 22 robots for $12650 each on account, terms 2/10, n/30, FOB Shipping Point, 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, $8000. 24-Dec Received $101200 payment for 8 robots 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%. 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. 2) Post all the Daily Transactions to the Ledger on the Ledger tab. 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 $5000. 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 $1760. 6 The delivery truck purchased on December 1 has a 10-year life and an expected residual (salvage) value of $6000. 7 Accrue the interest, if needed, on the note signed on December 1.