SMC$,$ Inc.

Post$-$Closing Trial Balance

December $31,2023$

Debits Credits

Cash $.........................................................................................................$ $$34,500$

Accounts Receivable............................................................................... $25,000$

Inventory $..................................................................................................10,000$

Supplies $...................................................................................................$

Accounts Payable....................................................................................

$200$

$$12,00$

Salaries Payable $......................................................................................1,000$

Income TaxesPayable............................................................................. $3,675$

Common Stock............................................................................................ $25,000$

Retained Earnings $...................................................................................28,025$

Totals........................................................................................................ $$69,700$

You are also given the following information that summarizes the business activity for the current year,$2024$

a$.$ Issued $10,000$ additional shares of common stock for $$60,000$ cash on January $1$st$.$

b$.$ Borrowed $$75,000$ onMarch $1,2024,$from Downtown Bank as a long$-$term loan. The interest rate

on the loan is $5\%$and Interest for the year is payable on January $1,2025.$

c$.$ Paid $$12,000$ cash on April$1$ to lease a building for one year.

d$.$ Received $$6,000$ on May $1$ from a tenant for one year$$s rent.

e$.$ Paid $$4,200$ on June $1$ for a one$-$year insurance policy.

f$.$ Purchased $$3,700$ of supplies for cash on June $15$th$.$

g$.$ Purchased inventory for $$125,000$ on account on July $1.$

h$.$ August $1,$ sold inventory for $$185,000$ on account; cost ofthe merchandise sold was $$120,000.$

i$.$ Collected $$145,000$ cash from customers$$accounts receivable onAugust $20$th$.$

j$.$ September $1,$Paid $$95,000$ cash for inventories purchased earlier during the year.

k$.$ September $20$th

paid $$34,000$ for sales reps$$ salaries, including $$1,000$ owed atthe beginning of$2024.$

l$.$ Dividends for $$9,500$ were paid onOctober $20$th$.$

m$.$ The income taxes payable for the year of $2023$ were paid on November $15$th$.$

n$.$ For adjusting entries, all prepaid expenses are initially recorded asassets, andall unearned revenues

are initially recorded as liabilities $($this is just informational$).$

o$.$ At year$-$end, $$1,050$ worth of supplies are on hand.

p$.$ At year$-$end, an additional $$9,500$ of sales salaries are owed, but have not yet been paid.

q$.$ Prepare an adjusting entry to recognize the taxes owed for $2024.$ The corporate tax rate is $21\%$ of the

income before income taxes$\mathrm{.}1.$ Journalize the transactions for the current year, $2024,$ using the chart of accounts listed on the

excel spreadsheet provided for the project.

$2.$ Set up T$-$accounts and enter the beginning balances from the December $31,2023,$ post$-$closing trial

balance for SMC$.$ Post all current year journal entries to the T$-$accounts.

$3.$ Journalize and post any necessary adjusting entries at the end of $2024.($Hint: Items b$,$ c$,$ d$,$ e$,$ o$,$ p$,$ and q

require adjustment.$)$