*Specifically looking for help with t-accounts and question 4, thank you!!*

As a recently hired accountant for a small business, SMC, Inc., you are provided with last years balance sheet, income statement, and post-closing trial balance to familiarize yourself with the business.

You are also given the following information that summarizes the business activity for the current year,2018

a.	Issued 10,000 additional shares of common stock for $25,000 cash on January 1st.
b.	Borrowed $10,000 on March 1, 2018, 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, 2019.
c.	Paid $9,000 cash on April 1 to lease a building for one year.
d.	Received $4,800 on May 1 from a tenant for one years rent.
e.	Paid $3,600 on June 1 for a one-year insurance policy.
f.	Purchased $2,200 of supplies for cash on June 15th.
g.	Purchased inventory for $100,000 on account on July 1.
h.	August 1, sold inventory for $170,000 on account; cost of the merchandise sold was $90,000.
i.	Collected $110,000 cash from customers accounts receivable on August 20th.
j.	September 1, Paid $85,000 cash for inventories purchased earlier during the year.
k.	September 20th paid $31,000 for sales reps salaries, including $1,000 owed at the beginning of 2018.
l.	Dividends for $9,500 were paid on October 20th.
m.	The income taxes payable for the year of 2017 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, $850 worth of supplies are on hand.
p.	At year-end, an additional $6,500 of sales salaries are owed, but have not yet been paid.
q.	Prepare an adjusting entry to recognize the taxes owed for 2018. The corporate tax rate is 25% of the income before income taxes.

Assignment Summary

On a spreadsheet, perform the following tasks using the information from SMC, Inc. provided above:

1. Journalize the transactions for the current year, 2018, using the accounts listed on the financial statements and other appropriate accounts.
2. Set up T-accounts and enter the beginning balances from the December 31, 2017, 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 2018. (Hint: Items b, c, d, e, o, p, and q require adjustment.)
4. After the adjusting entries are posted, prepare the following:
   • an adjusted trial balance,
   • an income statement,
   • statement of retained earnings, and
   • a balance sheet for 2018.

The format of your statements should mirror those prepared by the company in 2017.

5. Journalize and post-closing entries for 2018 and prepare a post-closing trial balance.
6. Compute the Current Ratio and Debt to Total Equity Ratio for 2017 and 2018.
7. Interpretive Question: What is your overall assessment of the financial health of SMC, Inc.?

CASH ACCTS REC INVENTORY SUPPLIES You should use the first 24 t-accounts after recording your adjusting entries The Income Summary T Account should only be used during the closing entry process PREPAID INSURANCE PREPAID RENT NOTES PAYABLE ACCTS PAYABLE UNEARNED RENT SALARIES PAYABLE INC TAXES PAYABLE INTEREST PAYABLE COMMON STOCK RETAINED EARNINGS DIVIDENDS SALES REVENUE RENT REVENUE INTEREST EXPENSE SALARIES EXPENSE SUPPLIES EXPENSE RENT REVENUE INTEREST EXPENSE SALARIES EXPENSE SUPPLIES EXPENSE COSTOFGOODS SOLD RENT EXPENSE INSURANCE EXP INCOME TAX EXP INCOME SUMMARY SMC, INC ADJUSTED TRIAL BALANCE 12/31/18 DEBIT ACCOUNT NAME CREDIT TOTALS 0 0 As a recently hired accountant for a small business, SMC, Inc., you are provided with last year's balance sheet, income statement, and post-closing trial balance to familiarize yourself with the business. SMC, Inc. Balance Sheet December 31, 2016 Assets Cash Accounts receivable Inventory Supplies Total assets.. $34,500 25,000 10,000 200 $69.700 Liabilities and Stockholders' Equity $12,000 1,000 3,675 Liabilities: Accounts payable Salaries payable Income taxes payable Total liabilities. Stockholders' equity: Capital stock (10,000 shares outstanding). Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. $16,675 $25,000 28,025 53.025 $69.700 SMC, Inc. Income Statement For the Year Ended December 31, 2016 $110,000 1.000 $111.000 60,000 $ 51,000 $ 400 Sales revenue Rent revenue Total revenues.. Less cost of goods sold. Gross profit Less operating expenses: Supplies expense Salaries expense Miscellaneous expense. Income beforetaxes. Less income taxes. Net income... Earnings per share ( $20,825 / 10,000shares) 22,000 4.100 26.500 $ 24,500 3,675 $ 20.825 $ 2.08 SMC, Inc. Post-Closing Trial Balance December 31, 2016 Debits Credits $34,500 25,000 10,000 200 Cash Accounts Receivable. Inventory Supplies Accounts Payable. Salaries Payable Income TaxesPayable Common Stock. Retained Earnings Totals. $12,000 1,000 3,675 25.000 28.025 $69.700 $69.700 You are also given the following information that summarizes the business activity for the current year,2017 Issued 10,000 additional shares of common stock for $25,000 cash on January 1st. b. Borrowed $10,000 on March 1, 2016, 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, 2018. c. Paid $9,000 cash on April1 to lease a building for one year. d. Received $4,800 on May from a tenant for one year's rent. e. Paid $3,600 on June 1 for a one-year insurance policy. f. Purchased $2,200 of supplies for cash on June 15th. g. Purchased inventory for $100,000 on account on July 1. h. August 1, sold inventory for $170,000 on account; cost of the merchandise sold was $90,000. I. Collected $110,000 cash from customers' accounts receivable on August 20th. i. September 1, Paid $85,000 cash for inventories purchased earlier during the year. k. September 20" paid $31,000 for sales reps'salaries, including $1,000 owed at the beginning of 2016. L Dividends for $9,500 were paid on October 20th. m. The income taxes payable for the year of 2016 were paid on November 15th. n. For adjustingentries, 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, $850 worth of supplies are on hand. p. At year-end, an additional $6,500 of sales salaries are owed, but have not yet been paid. 9. Prepare an adjusting entry to recognize the taxes owed for 2017. The corporate tax rate is 25% of the income before income taxes. You are asked to do the following on an excel spreadsheet: 1. Journalize the transactionsfor the current year, 2017, using the accounts listed on the financial statements and other appropriate accounts. 2. Set up T-accounts and enter the beginning balances from the December 31, 2016, 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 2017. (Hint: Items b, c, d, e, o, p, and a 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 2017. (Hint: Income before income taxes shouldequal xxxx). The format of your statements should mirror those prepared by the company in 2016. 5. Journalize and post-closing entries for 2017 and prepare a post-closing trial balance. 6. Compute the Current Ratio and Debt to Total Equity Ratio for 2016 and 2017 7. Interpretive Question: What your overall assessment of the financial health of SMC, Inc