P company starts operations on $2026-01-01$

All of P$$s accounts start with balances of $0$

Transactions during $2026$

Issues common stock for $$419288$ cash

Pays $$22222$ to purchases equipment. The equipment has a useful life of $4$ years

Purchases $$51903$ of inventory on a count from a supplier

Sells $$46817$ of merchandise for cash. Record revenue from the sale

Record the cost of revenue for this sale. The cost of the product P sold was $$28547$

Borrows $$39720$ from a bank for $5$ years

The interest rate on the note is $7\mathrm{.}5\%$ and payable annually on July $1$

Received $$40517$ from customer for services it will perform next year

Pays landlord $$10925$ for a year of rent beginning this month

Adjusting entries at the end of the year

Record depreciation expense for the year

Record interest expense from $2026-07-01$ to $2026-12-31$

Record rent expense from $2026-07-01$ to the $2026-12-31$

Closing entries

Record the entry to close all of the income statement accounts to Retained Earnings $($SE$).$

Financial Statements

Prepare all the financial statements $($Income statement, Balance Sheet and Statement of Cash Flows$)$ for the year ending on December $2026$

before the adjusting entries

after the adjusting entries

after the closing entry

Which of the following statements are correct for items on your updated spreadsheet for the year ended $2026($more than one answer may be correct$)$

Net Change in Cash is $$513205$

Net Change in Cash is $$513195$

Deferred Revenue $($L$)$ is $$40517$

Note Payable $($L$)$ is $$39720$

Revenue $($R$)$ is $$46827$

Total Long$-$term Assets is $$16676\mathrm{.}5$

Cash from Financing Activities is $$459008$

Interest Payable $($L$)$ is $$1489\mathrm{.}5$

Property$/$Plant$/$Equipment $($A$)$ is $$22222$

Interest Expense $($E$)$ is $$1499\mathrm{.}5$

Note Payable $($L$)$ is $$39730$

Total Equity is $$425050\mathrm{.}5$

Total Current Liabilities is $$93909\mathrm{.}5$

Prepaid Rent Expense $($A$)$ is $$5472\mathrm{.}5$

Depreciation Expense $($E$)$ is $$5565\mathrm{.}5$

Total Equity is $$425060\mathrm{.}5$

Property$/$Plant$/$Equipment $($A$)$ is $$22232$

Inventory $($A$)$ is $$23366$

Current Ratio is $5\mathrm{.}7716578$

Total Current Liabilities is $$93919\mathrm{.}5$