Company Information & Summary of Significant Account Policies Madison Machines Company began operations on November 1, 2023. The main operating goal of the company is to sell high end kilns. Customers may pay using cash or if appropriate, a 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 1% of the balance in accounts recievable will be uncollectible. The company purchases kilns 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. O2) Post all the Daily Transactions to the Ledger on the Ledger tab. 1 3) As of December 31, a search revealed the following information. Record any necessary adjusting entries for the year on the Adjusting Entries 2 tab. 1 The computer equipment purchased on November 1 has a 5-year life and an expected residual (salvage) value of $1200. 53 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 is for two years beginning on November 1. 56 4 The insurance policy purchased on November 18 is effective beginning December 1. 57 5 Supplies on hand as of December 31 totaled $480. 58 6 The delivery truck purchased on December 1 has a 10-year life and an expected residual (salvage) value of $5000. 59 7 Accrue the interest, if needed, on the note signed on December 1. 60 8 Record any bad debt expense for the year ended December 31. If needed, round to the nearest dollar. 61 62 9 Utilites accrued but not yet paid as of December 31 totaled $1800. 63 4) Post all the Adjusting Entires to the Ledger on the Ledger tab. 64 5) Based on the account balances in the ledger, create an adjusted trial balance on the Adjusted Trial Balance tab. 65 6) Based on the adjusted trial balance, prepare a multi-step income statement on the Income Statement tab. 66 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