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. Required: 1) Madison 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. 1-Nov The owner invested $125000 into the company in exchange for 5,000 shares of common stock. 1-Nov The company purchased a computer system for $12000 and signed a one-year note for the entire balance. The note is due on November 1, 2024 and has an annual rate of interest of 3%. 2-Nov Paid for two years rent on the office space, $15000. 3-Nov Purchased 10 kilns at a total cost of $1200 each for cash, FOB Destination. 4-Nov Purchased $1700 of supplies on account, term n/30. 15-Nov Purchased 12 kilns at a total cost of $1320 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, $9000. The policy was effective beginning December 1, 2023. 20-Nov Sold 15 kilns for $3100 each on account, terms 3/15, n/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 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 30-Nov 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. 1-Dec Paid the employees the amount due to them from the November 30 payroll, taxes will be paid in January. The company borrowed $75000 from Bank of America by signing a 10-year, 4% note. The note requires annual payments of $9247 1-Dec beginning December 1, 2024. 1-Dec Purchased a new delivery truck to save customers on shipping. The total cost of the Delivery Truck was $50000. 4-Dec Paid the amount due from the November 15 purchase. 5-Dec Declared and paid $3000 in cash dividends to the stockholders of the company. 6-Dec Purchased $1500 of supplies on account, term n/30. 7-Dec Purchased 20 kilns at a cost of $1452 each on account, terms n/30, FOB Destination. Sold 22 kilns for $3410 each on account, terms 2/10, n/30, the company uses FIFO to find the cost of goods sold. Record the sales 15-Dec revenue first. 18-Dec Paid for an ad in the local newspaper, $1500. 24-Dec Received $23870 payment for 7 kilns to be shipped on January 8, 2024. 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. 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 $1200. 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 $480. 6 The delivery truck purchased on December 1 has a 10-year life and an expected residual (salvage) value of $5000. 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. If needed, round to the nearest dollar. 9 Utilites accrued but not yet paid as of December 31 totaled $1800. 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