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Instructions

Jack, Inc. sells toy mice to high end pet stores. The company has been in business for many years and uses the calendar year for accounting purposes. The company is publicly owned, subject to all applicable rules and laws. The company uses the perpetual method to account for its inventory.

Following is Jack's trial balance for calendar year $2023$ through December $20$th$.$ This trial balance does not reflect the transactions that occurred during the last $11$ days of the year or adjustments that are necessary, as described by the additional information below. The Loan payable is due in $48$ months $($hint: current or non current$).$

A $=$ $$16,000$ B $=1\mathrm{.}5$ C $=$ $$23,700$ D $=$ $$1,450$ E $=$ $$1,470$

Use variable for below questions

The company received payment to settle a $$11,000$ Account receivable on December $21.$ The terms of the receivable were B$/10,$ N $30$ and the payment reflected that it was within the discount period.

On Dec $22,$ the company settled with cash a $$16,000$ Account payable with a vendor who sold the company inventory on December $18($the balance is included in Accounts payable at Dec $20).$ The terms of the payable were B$/10,$ N $30$ and the payment reflected that it was within the discount period.

The company sold C of toy mice on December $22.$ The terms of the sale were B$/10,$ N $30.$ The cost $($inventory$)$ of the mice was $$2,500.$

The company's president, Elizabeth, decided the company needed more capital, so she sold more stock on December $30$th for A

The equipment was purchased near the beginning of the year. D of its cost expired this year.

Interest of E is owed on December $31,$ but has not been recorded.

Supplies on hand at year end were counted, and amount to $$2,000.$

December's rent of $$2,000$ is owed, but has not been recorded.

Set up a chart of accounts, explain the purpose of the chart of accounts

Set up a three column General Ledger and drop in the account balances from the provided trial balance

Set up a General Journal and prepare the necessary entries through yearend.

Post journal entries to your General Ledger set up in $($B$)$ and determine the adjusted balances of the accounts. and create an adjusted trial balance

Prepare the multi$-$step income statement, statement of retained earnings and classified balance sheet. Use proper headings

Calculate the current ratio and gross profit percentage and explain what they mean with regards to this company

Analyze the financial statements with a minimum of a written five sentence paragraph using proper accounting language. The question is purposely broad. Reread this week's announcement if you need guidance but choose a different topic than the example provided.

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