Posted: July 5th, 2022

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. The attached pdf contains information for your course project. Here is a written version of the course project information. Computer Project Financial Accounting – SUMMER 2022.pdf

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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. The attached pdf contains information for your course project. Here is a written version of the course project information. Computer Project Financial Accounting – SUMMER 2022.pdf
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You are also given the following information that summarizes the business activity for the current year,2022
Issued 10,000 additional shares of common stock for $60,000 cash on January 1st.
Borrowed $50,000 on March 1, 2022, from Downtown Bank as a long-term The interest rate on the loan is 4% and Interest for the year is payable on January 1, 2023.
Paid $12,000 cash on April1 to lease a building for one year.
Received $6,000 on May 1 from a tenant for one year’s rent.
Paid $4,200 on June 1 for a one-year insurance policy.
Purchased $3,700 of supplies for cash on June 15th.
Purchased inventory for $125,000 on account on July 1.
August 1, sold inventory for $185,000 on account; cost of the merchandise sold was $120,000.
Collected $145,000 cash from customers’ accounts receivable on August 20th.
September 1, Paid $95,000 cash for inventories purchased earlier during the year.
September 20th paid $34,000 for sales reps’ salaries, including $1,000 owed at the beginning of 2022.
Dividends for $9,500 were paid on October 20th.
The income taxes payable for the year of 2021 were paid on November 15th.
For adjusting entries, all prepaid expenses are initially recorded as assets, and all unearned revenues are initially recorded as liabilities (this is just informational).
At year-end, $1,050 worth of supplies are on hand.
At year-end, an additional $9,500 of sales salaries are owed, but have not yet been paid.
Prepare an adjusting entry to recognize the taxes owed for 2022. The corporate tax rate is 21% of the income before income taxes.
Assignment Summary
You are asked to do the following on an excel spreadsheet:
Journalize the transactions for the current year, 2022, using the chart of accounts listed on the
excel spreadsheet provided for the project.
Set up T-accounts and enter the beginning balances from the December 31, 2021, 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 (Hint: Items b, c, d, e, o, p, and q require adjustment.)
After the adjusting entries are posted, prepare an adjusted trial balance, an income statement, statement of retained earnings and a balance sheet for 2022. The format of your statements should mirror those prepared by the company in 2021 (This doesn’t mean all of the account titles will be the same).
Journalize and post-closing entries for 2022 and prepare a post-closing trial balance
Compute the Current Ratio and Debt to Total Equity Ratio for 2021 and 2022
Interpretive Question: What is your overall assessment of the financial health of SMC, ? Use this Excel Template to complete items 1 through 6: Computer Project Template – Financial Accounting (SUMMER 2022).xlsx Download Computer Project Template – Financial Accounting (SUMMER 2022).xlsx Use this Word Document to answer question #7 Interpretive Question: Analysis Form for Computer Project (SUMMER 2022).docx
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