Now that you have prepared the adjusting and closing entries, Smith Manufacturing, Inc. has asked that you create a classified Balance Sheet, a multiple-step Income Statement, and Cash Flow Statement using the indirect method. Use your ending numbers from last week's assignment. The prior-year trial balance was included in a separate tab in the spreadsheet you downloaded last week. You will need these numbers to prepare the Statement of Cash Flows. Create your financial statements in Excel.

ADJUSTING AND CLOSING ENTRIES 1 Adjusting and Closing Entries Samuel Terry Rasmussen College Author Note This assignment is being submitted on October 15th, 2017, for Tyhani Hill's A490/ACG4931 Accounting Capstone II course. ADJUSTING AND CLOSING ENTRIES 2 ADJUSTING AND CLOSING ENTRIES Smith Manufacturing, Inc. Trial Balance December 31, 20XX DR 362,750 320,750 Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable (due in 10 months, 5%) Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals CR 15,000 10,000 30,000 50,000 150,000 7,500 500,000 50,000 105,000 125,000 500,000 300,000 171,000 850,000 550,000 150,000 2,123,500 Smith Manufacturing, Inc. Post-Closing Trial Balance December 31, 20XX DR Cash 15,000 Accounts receivable 225,750 2,123,500 CR ADJUSTING AND CLOSING ENTRIES 3 Allowance for uncollectible accounts 20,000 Prepaid insurance 5,000 Inventory 80,000 Land 50,000 Building 150,000 Accumulated depreciation-building Equipment 7,500 500,000 Accumulated depreciation-equipment 50,000 Accounts payable 55,000 Note payable 50,000 Salaries payable 5,000 Interest payable 17,250 Note payable (due in 5 years, 3%) 350,000 Common Stock (3,000 shares outstanding) 300,000 Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense 171,000 Totals 1,025,750 1,025,750