Accounting Cycle Review 6a-c, d1-d2, e-f On December 1, 2019, Matthias Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment Debit $4,300 3,600 1,860 * 21,500 $31,260 Accumulated Depreciation Equipment Accounts Payable Common Stock Retained Earnings Credit $1,600 3,300 21,100 5,260 $31,260 *(3,100 x $0.60) The following transactions occurred during December. Dec. 3 Purchased 4,100 units of inventory on account at a cost of $0.78 per unit. 5 Sold 4,300 units of inventory on account for $0.90 per unit. (Matthias sold 3,100 of the $0.60 units and 1,200 of the $0.78.) 7 Granted the December 5 customer $270 credit for 300 units of inventory returned costing $180. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.80 each. 22 Sold 2,300 units of inventory on account for $0.95 per unit. (Matthias sold 2,300 of the $0.78 units.) Adjustment data: 1. Accrued salaries payable $430. 2. Depreciation $180 per month. Journalize the December transactions, assuming Matthias uses the perpetual inventory method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 3 Inventory 3198 Accounts Payable 3198 Dec. 5 Accounts Receivable 3870 Sales Revenue 3870 (To record sales revenue) Cost of Goods Sold 2796 2796 Inventory (To record cost of goods sold) Dec. 7 Sales Returns and Allowances 270 Accounts Receivable 270 (To record sales return) Inventory 180 Cost of Goods Sold 180 (To record cost of goods returned) Dec. 17 Inventory 1760 Cash 1760 Dec. 22 Accounts Receivable 2185 Sales Revenue 2185 Dec. 22 v Accounts Receivable 2185 Sales Revenue 2185 (To record sales revenue) Cost of Goods Sold 1794 1794 Inventory (To record cost of goods sold) Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 (1) Salaries and Wages Expense 430 430 Salaries and Wages Payable (To record accrued expense) (2) Depreciation Expense 180 180 Accumulated Depreciation-Equipment (To record depreciation expense) Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the accounts mentioned above, use the following additional accounts: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. (Post entries in the order of journal entries presented above.) Cash Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the accounts mentioned above, use the following additional accounts: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. (Post entries in the order of journal entries presented above.) Cash 12/1 Bal. 12/3 Accounts 12/5 12/7 12/17 12/22 12/31 12/31 Bal. Inventory Equipment Accumulated Depreciation Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Sales Revenue Sales Returns & Allowances Cost of Goods Sold Salaries and Wages Expense Depreciation Expense Prepare an adjusted trial balance as of December 31, 2019. MATTHIAS COMPANY Adjusted Trial Balance December 31, 2019 Debit Credit $ $ Prepare an adjusted trial balance as of December 31, 2019. MATTHIAS COMPANY Adjusted Trial Balance December 31, 2019 Debit Credit $ $ Prepare an income statement for December 2019. MATTHIAS COMPANY Income Statement $ $ $ $ Prepare a classified balance sheet at December 31, 2019. (List current assets in order of liquidity.) MATTHIAS COMPANY Balance Sheet Assets $ $ Liabilities and Stockholders' Equity $ $ Liabilities and Stockholders' Equity $ $ $ Compute ending inventory and cost of goods sold under FIFO, assuming Matthias Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold $ Compute ending inventory and cost of goods sold under LIFO, assuming Matthias Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold $