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Issued $10,000$ additional shares of common stock for $$60,000$ cash on January $1$st$.$

b$.$ Borrowed $$75,000$ on March $1,2023,$ 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$1,2024.$

c$.$ Paid $$12,000$ cash on April$1$ to lease a building for one year.

d$.$ Received $$6,000$ on May $1$ from a tenant for one year$$s rent.

e$.$ Paid $$4,200$ on June $1$ for a one$-$year insurance policy.

f$.$ Purchased $$3,700$ of supplies for cash on June $15$th$.$

g$.$ Purchased inventory for $$125,000$ on account on July $1.$

h$.$ August $1,$ sold inventory for $$185,000$ on account; cost of the merchandise sold was $$120,000.$

i$.$ Collected $$145,000$ cash from customers$$ accounts receivable on August $20$th$.$

j$.$ September $1,$ Paid $$95,000$ cash for inventories purchased earlier during the year.

k$.$ September $20$th paid $$34,000$ for sales reps$$ salaries, including $$1,000$ owed at the beginning of $2023.$

l$.$ Dividends for $$9,500$ were paid on October $20$th$.$

m$.$ The income taxes payable for the year of $2022$ were paid on November $15$th$.$

n$.$ Foradjustingentries,allprepaid expensesareinitially recordedasassets,andallunearnedrevenues

are initially recorded as liabilities $($this is justinformational$).$

o$.$ At year$-$end, $$1,050$ worth of supplies are on hand.

p$.$ At year$-$end, an additional $$9,500$ of sales salaries are owed, but have not yet been paid.

q$.$ Prepare an adjusting entry to recognize the taxes owed for $2023.$ The corporate tax rate is $21\%$ of the

income before income taxes.

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

$1.$ Journalize the transactions for the current year, $2023,$ using the chart of accounts listed on the excel spreadsheet provided for the project.

$2.$ Set up T$-$accounts and enter the beginning balances from the December $31,2022,$ 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 $2023.($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 $2023.$ The format of your statements should mirror those prepared by the company in $2022.$

$5.$ Journalize and post$-$closing entries for $2023$ and prepare a post$-$closing trial balance.

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