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 $1$st$.$

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 $$4,800$ on May $1$ from a tenant for one year$$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 $15$th$.$

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 $20$th$.$

j$.$ September $1,$ Paid $$85,000$ cash for inventories purchased earlier during the year.

k$.$ September $20$th 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 $20$th$.$

m$.$ The income taxes payable for the year of $2017$ were paid on November $15$th$.$

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:

Journalize the transactions for the current year, $2018,$ using the accounts listed on the financial statements and other appropriate accounts.

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.

Journalize and post any necessary adjusting entries at the end of $2018.($Hint: Items