1. Prepare the FIFO inventory record (see Illustration 6.5 in the textbook) to determine the cost of goods sold and ending inventory resulting from the inventory purchases and sales noted in the transactions above. You will need the cost of goods sold to complete the journal entry for the December 14 and 29 sales.

2. Prepare the journal entries for the transactions that occurred in December, 2021. For transactions affecting 'Cash', include the cheque number in the explanation. c. Post the journal entries to the general ledger.

3. Prepare an unadjusted trial balance.

Your business is growing and operations in 2021 have been quite successful. Your business has purchased more equipment. It has also added another revenue stream: selling juicing machines to the public. You have a friend at Dillan Manufacturing that has agreed to sell you high-quality juicing machines at a wholesale price so you can sell them to the public at a profit. The business has the following trial balance as at November 30, 2021: Name of Your Business Adjusted trial balance November 30, 2021 110 130 135 140 160 5,037 2,150 2,250 118 4,650 161 210 1,540 63 652 21 Cash Accounts receivable Inventory Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue Wages payable Interest payable Notes payable capital drawings Sales revenue Cost of goods sold Advertising expense Depreciation expense Interest expense Repairs expense Supplies expense Telephone expense Wages expense 5,000 9,562 5,778 230 240 245 260 310 320 410 505 508 515 527 540 550 563 570 12,600 6,540 425 1,410 256 107 279 294 144 29,438 29,438 The $2250 inventory balance is comprised of 3 juicing machines that cost $750 each. The note payable is to the bank and interest is paid on the 1st day of each month. You had paid off the loan to your mother early in 2021. The following transactions happen during the month of December, 2021: Dec 1 2 You paid the November interest owing on the bank loan. You issued cheque #317. You collected $910 cash from a customer, on account, to whom you had previously sold a juicing machine. You paid the November 30 balance of accounts payable. You issued cheque #318. 9 11 You purchased, on account, 3 more juicing machines for $800 each (excluding freight). The purchase invoice also included a $51 freight charge for the cost of transporting the machines from the vendor to your place. NOTE: Since you will use the FIFO cost-flow assumption, you should make a "FIFO Inventory Record" (See textbook Illustration 6.5) for your Juicing Machine inventory. 12 You buy $240 of supplies such as protein powder, cups, straws, and fresh fruit and vegetables, on account. You sold, on account, two juicing machines to Bill's Fitness for $1000 each. You will use the FIFO method of recording inventory transactions. 14 21 23 27 You make and deliver a batch of smoothies to Fred's Yoga Studio and you issue a sales invoice of $465. The invoice is payable in 30 days. You paid the amount owing on the December 11 purchase. You issued cheque #319. You purchased, on account, 2 more juicing machines for $845 each (excluding freight). The purchase invoice also included a $40 freight charge for the cost of transporting the machines from the vendor to your place. 28 29 You paid $42 cash for repairs done to some equipment. You issued cheque #320. You sold, on account, two juicing machines to the owners of City Contemporary Dance Studio (Remember that freight is part of inventory). The selling price of each machine was $990. 30 31 You received a $103 e-bill for your business cell phone service for December and you paid it immediately. You issued cheque #321. You collected $1980 cash from a customer whom you had, on December 14, sold two juicing machines. You paid a casual worker $73 cash for wages for work done in December. You issued cheque #322. Instructions a. Prepare the FIFO inventory record (see Illustration 6.5 in the textbook) to determine the cost of goods sold and ending inventory resulting from the inventory purchases and sales noted in the Your business is growing and operations in 2021 have been quite successful. Your business has purchased more equipment. It has also added another revenue stream: selling juicing machines to the public. You have a friend at Dillan Manufacturing that has agreed to sell you high-quality juicing machines at a wholesale price so you can sell them to the public at a profit. The business has the following trial balance as at November 30, 2021: Name of Your Business Adjusted trial balance November 30, 2021 110 130 135 140 160 5,037 2,150 2,250 118 4,650 161 210 1,540 63 652 21 Cash Accounts receivable Inventory Supplies Equipment Accumulated depreciation Accounts payable Unearned revenue Wages payable Interest payable Notes payable capital drawings Sales revenue Cost of goods sold Advertising expense Depreciation expense Interest expense Repairs expense Supplies expense Telephone expense Wages expense 5,000 9,562 5,778 230 240 245 260 310 320 410 505 508 515 527 540 550 563 570 12,600 6,540 425 1,410 256 107 279 294 144 29,438 29,438 The $2250 inventory balance is comprised of 3 juicing machines that cost $750 each. The note payable is to the bank and interest is paid on the 1st day of each month. You had paid off the loan to your mother early in 2021. The following transactions happen during the month of December, 2021: Dec 1 2 You paid the November interest owing on the bank loan. You issued cheque #317. You collected $910 cash from a customer, on account, to whom you had previously sold a juicing machine. You paid the November 30 balance of accounts payable. You issued cheque #318. 9 11 You purchased, on account, 3 more juicing machines for $800 each (excluding freight). The purchase invoice also included a $51 freight charge for the cost of transporting the machines from the vendor to your place. NOTE: Since you will use the FIFO cost-flow assumption, you should make a "FIFO Inventory Record" (See textbook Illustration 6.5) for your Juicing Machine inventory. 12 You buy $240 of supplies such as protein powder, cups, straws, and fresh fruit and vegetables, on account. You sold, on account, two juicing machines to Bill's Fitness for $1000 each. You will use the FIFO method of recording inventory transactions. 14 21 23 27 You make and deliver a batch of smoothies to Fred's Yoga Studio and you issue a sales invoice of $465. The invoice is payable in 30 days. You paid the amount owing on the December 11 purchase. You issued cheque #319. You purchased, on account, 2 more juicing machines for $845 each (excluding freight). The purchase invoice also included a $40 freight charge for the cost of transporting the machines from the vendor to your place. 28 29 You paid $42 cash for repairs done to some equipment. You issued cheque #320. You sold, on account, two juicing machines to the owners of City Contemporary Dance Studio (Remember that freight is part of inventory). The selling price of each machine was $990. 30 31 You received a $103 e-bill for your business cell phone service for December and you paid it immediately. You issued cheque #321. You collected $1980 cash from a customer whom you had, on December 14, sold two juicing machines. You paid a casual worker $73 cash for wages for work done in December. You issued cheque #322. Instructions a. Prepare the FIFO inventory record (see Illustration 6.5 in the textbook) to determine the cost of goods sold and ending inventory resulting from the inventory purchases and sales noted in the