10 On January 1, 2024, Displays Incorporated bad the following account balances Account Title Cash 9 points Accounts receivable Supplies Skipped Inventory Land Accounts payable . Notes payable (7%, due next eBook year) Common stock Retained earnings Reference Totals ME Debit $ 37,000 Credit 34,000 40,000 65,000 242,000 $ 48,000 35,000 201,000 134,000 $ $ 418,000 418,000 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account for $345,000. b. Sold inventory on account for $645,000. The cost of the inventory sold was $325,000 c. Received $586,000 from customers on accounts receivable. d. Paid freight on inventory received, $39,000 e. Paid $335,000 to inventory suppliers on accounts payable of $342,000. The difference reflects purchase discounts of $7,000. f. Paid rent for the current year, $57,000. The payment was recorded to Rent Expense, g. Paid salaries for the current year, $165,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $7,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $33,000. Complete this question by entering your answers in the tabs below. Require General General Trial Income Balance Journal Ledger Balance Statem Sheet Analysis Prepare the journal entries for transactions. Note: If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet Show lessA X Debit Credit are $7,000. Record the adjusting entry for supplies. Record the adjusting entry for accrued interest expense on notes payable. Accrued income taxes at the end of December are $33,000. Record the adjusting entry for income taxes. Record the closing entry for revenue accounts. Record the closing entry for expense accounts. Note journal entry has been entered Requirement General Ledger > M Complete this question by entering your answers in the tabs below. Require... Journal General General Trial Income Balance Ledger Balance Statem... Sheet Analysis Prepare an income statement for the period ended December 31, 2024. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjust Show lessA Displays Incorporated Income Statement For the year ended December 31, 2024 Gross profit Total operating expenses Operating income Complete this question by entering your answers in the tabs below. Require... Balance Analysis General General Trial Income Journal Ledger Balance Statem... Sheet Prepare a classified balance sheet as of December 31, 2024. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post- closing balances will appear for each account, based on your selection. Unadjust Assets Current Assets: Total Current Assets Noncurrent Assets: Displays Incorporated Balance Sheet December 31, 2024 Liabilities Current Liabilities: Total Liabilities Stockholders' Equity Total Stockholders' Equity 0 Total Assets $ 0 Total Liabilities & Stockholders' Equity 0 Show lessA Complete this question by entering your answers in the tabs below. General General Trial Require... Income Balance Journal Ledger Balance Statem... Sheet Analysis Using the information from the requirements above, complete the 'Analysis'. Analyze the following for Displays Incorporated: (a) Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming the ending balance of inventory under LIFO would have been $110,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume the $65,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2024 of 1.20. Calculate the amount the company would report for inventory using dollar-value LIFO. Ending inventory using dollar-value LIFO: (c) Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO) Instead of FIFO in periods of rising inventory costs and stable inventory quantities. 1. Inventory turnover ratio 2. Average days in inventory 3. Gross profit ratio < Balance Sheet Analysis >