The Michigan Flyer Wholesale Building Products Company began operations on January $1,2022.$

During the month of January $2022,$ the following transactions occurred:

a$.$ Scott Jones and Evie Lawson each invest $$50,000$ cash in the corporation in exchange for $5,000$ shares of common stock each.

b$.$ Equipment is purchased for $$15,000$ cash.

c$.$ On the first day of January, $$3,500$ monthly rent on a building is prepaid for the months of January and February.

d$.$ On January $6,2022$ Office supplies are purchased on account for $$850.$

e$.$ Merchandise inventory costing $$55,000$ is purchased on account. The company uses the perpetual inventory system.

f$.$ On January $25,2022,$ $$25,000$ is borrowed from a local bank, and a note payable is signed.

g$.$ On January $20,2022,$ a customer deposits $$2,200$ for February delivery of shipment of lumber

h$.$ Sales on account for January $2022$ are $$57,000.$ The cost of merchandise sold is $$28,500.$

i $$15,000$ is collected on account from customers.

j$.$ $$20,000$ is paid on account to vendors

k$.$ Salaries of $$3,500$ are paid to employees for January. Federal Withholding is $$900,$ State Withholding is $$450$ social security is $6\mathrm{.}2\%$ and Medicare is $1\mathrm{.}45\%$ of gross wages

l$.$ On January $31,2022,$ a bill for $$1,500$ is received from the local utility company for the month of January.

m On January $30,2022$ A customer has requested that the company convert his account receivable of $20,000$ to a note and the company agrees.

n On December $15,2022$ the corporation declares cash dividends of $1,000,$ payable on January $30,2023$

Prepare Journal Entries for each Transaction

You may need to add additional rows for a entry

Account Name: Debit Credit

a$.$

b$.$

c$.$

d$.$

e$.$

f$.$

g$.$

h$.$

i$.$

j$.$

k$.$

l$.$

M

N

Prepare an Unadjusted Trial Balance in proper format

Unadjusted Trial Balance

Account Title Debits Credits

$$0\mathrm{.}00$ $$0\mathrm{.}00$

The following information is available for preparing adjusting journal entries:

a$.$ The note payable requires the entire $$25,000$ in principal plus interest at $5\%$ to be paid on December $31,2023.$ The date of the loan is January $25,2022.$

b$.$ The equipment is has a salvage value of $$3,000$ and is depreciated on a straight$-$line basis over $6$ years.

c$.$ The note requires the entire $$20,000$ in principal plus interest at $6\%$ to be repaid in by December $31,2022$

d$.$ Record the rent expense for January

e$.$ Record Tax expense that will be paid later of $$5,842\mathrm{.}31$

Prepare Journal Entries for each Transaction

Account Name:

Debit Credit

a$.$

b$.$

c$.$

d$.$

Prepare an Unadjusted Trial Balance in proper format

Account Title Debits Credits

Prepare a Multi$-$step Income Statement in Proper Format

Calculate Income Taxes at $30\%$

Prepare Statement of Shareholders Equity in Proper Format

Prepare a Classified Balance Sheet in proper format

Prepare a Cash Flow Statement in Proper Format using the Indirect Method

Prepare Closing entries for January $312022$ for Michigan Flyer

Please calculate the following ratios and then provide commentary on the January results.

Use formulas that link to the financial statements when calculating the ratios.

January $2022$ Industry Ratios Commentary

Activity Ratios:

Working Capital

Current Ratio

Asset Turnover

Receivables Turnover

Inventory Turnover

Return on Assets

Profitability Ratios:

Profit Margin on Sales

Financing Ratios:

Debt$/$Equity

Return on Equity