You are asked to do the following on an excel spreadsheet:

1. Journalize the transactions for the current year, 2015, using the accounts listed on the financial statements and other appropriate accounts .

2. Journalize and post any necessary adjusting entries at the end of 2015. (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 2015. (Hint: Income before income taxes should equal $27,000)

5. Journalize and post-closing entries for 2015 and prepare a post-closing trial balance.

6. Interpretive Question: What is your overall assessment of the financial health of SMC, Inc.?

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, 2014 Assets Cash Accounts receivable Inventory Supplies Total assets $34,500 25,000 10,000 $69 700 Liabilities and Stockholders' Equity Liabilities: Accounts payable Salaries payable Income taxes payable $12,000 1,000 3.675 Total liabilitie Stockholders'equity: $16,675 Capital stock (10,000 shares outstanding) Retained earnings $25,000 28.025 Total stockholders' equity Total liabilities and stockholders' equity 53.025 $69 700 SMC, Inc. Income Statement For the Year Ended December 31, 2014 $110,000 Sales revenue Rent revenue Total revenues Less cost of goods sold Gross margin Less operating expenses: $111,000 60,000 $51,000 $400 Supplies expense Salaries expense Miscellaneous expense 22,000 4.1 $24,500 3,675 $20,825 Net income