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 che 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 $5000 per month and the other employee is the office nanager with a salary of $3000 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. 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. \begin{tabular}{|c|c|} \hline 1-Nov & The owner invested $470000 into the company in exchange for 5,000 shares of common stock. \\ \hline 1Nov & \begin{tabular}{l} The company purchased a computer system for $60000 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%. \end{tabular} \\ \hline 2-Nov & Paid for two years rent on the office space, $9400. \\ \hline 3-Nov & Purchased 10 robots at a total cost of $4000 each for cash, FOB Destination. \\ \hline 4-Nov & Purchased $2000 of supplies on account, term n/30. \\ \hline 15Nov & \begin{tabular}{l} Purchased 12 robots at a total cost of $4400 each on account, terms n/30, FOB Destination. Shipping of $150 was paid to \\ the shipping company by the appropriate party. \end{tabular} \\ \hline 17-Nov & Paid for the supplies purchased on November 4. \\ \hline 18-Nov & Paid for a two-year insurance policy for the store, $6000. The policy was effective beginning December 1,2024 . \\ \hline 20Nov & \begin{tabular}{l} Sold 15 robots for $7500 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. \end{tabular} \\ \hline 28-Nov & Received payment in full on account from the November 20 sale. \\ \hline 29-Nov & Paid for November's utilities bill $4700. \\ \hline 30-Nov & \begin{tabular}{l} Prepared payroll for the month of November, the first payroll for the company. Record the Salares 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. \end{tabular} \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline 1-Dec & Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January. \\ \hline 1-Dec & \begin{tabular}{l} The company borrowed $65000 from Bank of America by signing a 15-year, 6% note. The note requires annual payments of \\ $6693 beginning December 1,2025 . \end{tabular} \\ \hline 1-Dec & Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $30000. \\ \hline 4-Dec & Paid the amount due from the November 15 purchase. \\ \hline 5-Dec & Declared and paid $2000 in cash dividends to the stockholders of the company. \\ \hline 6-Dec & Purchased $2400 of supplies on account, term n/30. \\ \hline 7-Dec & Purchased 20 robots at a cost of $4840 each on account, terms n/30, FOB Destination. \\ \hline 15-Dec & \begin{tabular}{l} Sold 22 robots for $8250 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. \end{tabular} \\ \hline 18-Dec & Paid for an ad in the local newspaper, $4000. \\ \hline 24-Dec & Received $66000 payment for 8 robots to be shipped on January 8,2025 . \\ \hline 31Dec & \begin{tabular}{l} 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. \end{tabular} \\ \hline \end{tabular} 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. Closing Entries Journal Page \begin{tabular}{|c|c|c|c|} \hline Date & Account & DR & CR \\ \hline \multicolumn{4}{|l|}{ 31-Dec } \\ \hline & & & \\ \hline & & & \\ \hline \multirow{2}{*}{\multicolumn{4}{|c|}{ 31-Dec }} \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline 31-Dec & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}