g$.$ Salaries earned by employees since the last payroll date $($December

amounted to $$1,400$ at month$-$end.

h$.$ It is estimated that the company is subject to a combined federal,

state and local income tax rate of $30$ percent of income before

income taxes $($total revenue minus all expenses other than income

taxes$).$ These taxes will be payable in $2023.$

Instructions:

a$.$ Perform the following steps of the accounting cycle for the month of

December:

Record in the general journal the December transactions and post

to the appropriate ledger accounts.

Prepare the unadjusted trial balance on a $10-$column worksheet for

the year ended December $31.$ See example on page $112$

$($Exhibit $3$B$\mathrm{.}1)$ in our text book.

Prepare the necessary adjusting entries for December.

Post the December adjusting entries to the appropriate ledger

accounts.

Complete the $10-$column worksheet for the year ended December

b$.$ In professional format, prepare an Income Statement and Statement

of Shareholders' Equity for the year ended December $31,$ and a Balance

Sheet as of December $31.$

c$.$ Prepare required footnote disclosures to accompany the December $31$

financial statements. Your solution should include a separate footnote

addressing each of the following areas: $(1)$ depreciation policy, $(2)$

maturity dates of major liabilities, and $(3)$ potential liability due to