SMC, Inc. Post-Closing Trial Balance December 31, 2021 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,2022 a. Issued 10,000 additional shares of common stock for $60,000 cash on January 1st. b. Borrowed $50,000 on March 1, 2022, from Downtown Bank as a long-term loan. The interest rate on the loan is 4%and Interest for the year is payable on January 1, 2023. 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 of the merchandise sold was $120,000. i. Collected $145,000 cash from customers accounts receivable on August 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 at the beginning of 2021. l. Dividends for $9,500 were paid on October 20th. m. The income taxes payable for the year of 2021 were paid on November 15th. n. For adjusting entries, all prepaid expenses are initially recorded as assets, and all 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 2022. The corporate tax rate is 21% of the income before income taxes.