SMC, Inc. Post-Closing Trial Balance December 31, 2022 ou are also given the following information that summarizes the business activity for the current year,2023 a. Issued 10,000 additional shares of common stock for $45,000 cash on January 1 st. b. Borrowed \$25,000 on March 1, 2023, 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, 2024. c. Paid $18,000 cash on April1 to lease a buliding for one year. d. Recelved $7,500 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 $3,500 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 of the merchandise sold was $120,000. i. Collected $130,000 cash from customers' accounts receivable on August 20 th. j. September 1,Paid $95,000 cash for inventorles purchased earlier during the year. k. September 20 paid $34,000 for sales reps' salaries, including $2,500 owed at the beginning of 2023. I. Dividends for $9,500 were paid on October 20 th. m. The income taxes payable for the year of 2022 were paid on November 15 th. n. For adjustingentries, all prepaid expenses are initially recorded as assets, and all uneamed 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 $7,200 of sales salaries are owed, but have not yet been paid. q. Prepare an adjusting entry to recognize the taxes owed for 2023 . The corporate tax rate is 21% of the income before income taxes. You are asked to do the following on an excel spreadsheet: 1. Journalize the transactions for the current year, 2023, 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, 2022, post-closing trial balance for SMC. Post all current year journal entrics to the T-accounts. 3. Journalize and post any necessary adjustingentries at the end of 2023 . (Hint: Items b, c, d, e, o, p, and q require adjustment.) 4. After the adjusting entries are posted, prepare an adjusted trial balance, an income statement, statement of retained earnings and a balance sheet for 2023. The format of your statements should mirror those prepared by the company in 2022. 5. Journalize and post-closing entries for 2023 and prepare a post-closing trial balance. 6. Compute the Current Ratio and Debt to Total Equity Ratio for 2022 and 2023 Chart of Accounts: CASH ACCOUNTS RECEIVABLE INVENTORY SUPPLIES PREPAID INSURANCE PREPAID RENT ACCOUNTS PAYABLE SALARIES PAYABLE INTEREST PAYABLE INCOME TAX PAYABLE UNEARNED RENT REVENUE NOTES PAYABLE COMMON STOCK RETAINED EARNINGS DIVIDENDS SALES REVENUE RENT REVENUE COST OF GOODS SOLD RENT EXPENSE SUPPLIES EXPENSE SALARIES EXPENSE INTEREST EXPENSE INSURANCE EXPENSE INCOME TAX EXPENSE INCOME SUMMARY