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SMC , Inc. Post - Closing Trial Balance December 3 1 , 2 0 2 3 Debits Credits Cash . . . . . .
SMC Inc.
PostClosing Trial Balance
December
Debits Credits
Cash $
Accounts Receivable...............................................................................
Inventory
Supplies
Accounts Payable....................................................................................
$
Salaries Payable
Income TaxesPayable.............................................................................
Common Stock............................................................................................
Retained Earnings
Totals........................................................................................................ $ $
You are also given the following information that summarizes the business activity for the current year,
a Issued additional shares of common stock for $ cash on January st
b Borrowed $ onMarch from Downtown Bank as a longterm loan. The interest rate
on the loan is and Interest for the year is payable on January
c Paid $ cash on April to lease a building for one year.
d Received $ on May from a tenant for one years rent.
e Paid $ on June for a oneyear insurance policy.
f Purchased $ of supplies for cash on June th
g Purchased inventory for $ on account on July
h August sold inventory for $ on account; cost ofthe merchandise sold was $
i Collected $ cash from customersaccounts receivable onAugust th
j September Paid $ cash for inventories purchased earlier during the year.
k September th
paid $ for sales reps salaries, including $ owed atthe beginning of
l Dividends for $ were paid onOctober th
m The income taxes payable for the year of were paid on November 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 yearend, $ worth of supplies are on hand.
p At yearend, an additional $ of sales salaries are owed, but have not yet been paid.
q Prepare an adjusting entry to recognize the taxes owed for The corporate tax rate is of the
income before income taxes Journalize the transactions for the current year, using the chart of accounts listed on the
excel spreadsheet provided for the project.
Set up Taccounts and enter the beginning balances from the December postclosing trial
balance for SMC Post all current year journal entries to the Taccounts.
Journalize and post any necessary adjusting entries at the end of Hint: Items b c d e o p and q
require adjustment.
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