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SMC , Inc. Post - Closing Trial Balance December 3 1 , 2 0 2 3 Debits Credits Cash . . . . . .

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
$12,000
Salaries Payable ......................................................................................1,000
Income TaxesPayable............................................................................. 3,675
Common Stock............................................................................................ 25,000
Retained Earnings ...................................................................................28,025
Totals........................................................................................................ $69,700 $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 1st.
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 April1 to lease a building for one year.
d. Received $6,000 on May 1 from a tenant for one years rent.
e. Paid $4,200 on June 1 for a one-year insurance policy.
f. Purchased $3,700 of supplies for cash on June 15th.
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 customersaccounts receivable onAugust 20th.
j. September 1,Paid $95,000 cash for inventories purchased earlier during the year.
k. September 20th
paid $34,000 for sales reps salaries, including $1,000 owed atthe beginning of2024.
l. Dividends for $9,500 were paid onOctober 20th.
m. The income taxes payable for the year of 2023 were paid on November 15th.
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.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.)

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