Accounting Cycle Review 6 a- f On December 1, 2020, Sunland Company had the account balances shown below. Debit Credit Cash Accounts Receivable 5,000 Accounts Payable Inventory Equipment $4,800 Accumulated Depreciation-Equipment $1,100 3,000 33,100 2,400 Owner's Capital $37,200 $37,200 (4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,400 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,900 units of inventory on account for $0.86 per unit. (Sunland sold 4,000 of the $0.60 units and 900 of the $0.70.) 7 Granted the December 5 customer $165 credit for 200 units of inventory returned costing $110. These units were returned to inventory. 17 Purchased 2,000 units of inventory for cash at $0.76 each. 22 Sold 3,000 units of inventory on account for $0.91 per unit. (Sunland sold 3,000 of the $o.70 units.) Adjustment data: 1. Accrued salaries payable $500 2. Depreciation $320 per month. Journalize the December transactions and adjusting entries, assuming Sunland uses the perpetual inventory method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit To record sales revenue.) To record cost of goods sold.) (To record sales returns.) (To record cost of sales returns.) To record sales revenue.) (To record cost of goods sold.) To record accrued expense.) To record depreciation expense.) Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.) Cash Accounts Receivable Inventory Equipment Accounts Payable Accumulated Depreciation-Equipment Salaries and Wages Payable Owner's Capital Sales Revenue Salaries and Wages Expense Cost of Goods Sold Sales Returns& Allowances Depreciation Expense Prepare an adjusted trial balance as of December 31, 2020 SUNLAND COMPANY Adjusted Trial Balance Debit Credit Totals LINK TO TEXT Prepare an income statement for December 2020 SUNLAND COMPANY Income Statement LINK TO TEXT Prepare a classified balance sheet at December 31, 2020. (List Current Assets in order of liquidity.) SUNLAND COMPANY Balance Sheet Assets Liabilities and Owner's Equity Compute ending inventory and cost of goods sold under FIFO, assuming Sunland Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold Compute ending inventory and cost of goods sold under LIFO, assuming Sunland Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold s