Comprehensive Accounting Cycle Review 6 On December 1, 2017, Blue Spruce Corp. had the account balances shown below. Cash Accounts Receivable Inventory (3,300 x $0.60) Equipment Debits $4,810 Accumulated Depreciation-Equipment 3,740 Accounts Payable 1,980 Common Stock 22,700 Retained Earnings $33,230 Credits $1,550 3,150 9,900 18,630 $33,230 The following transactions occurred during December. Dec. 3 Purchased 4,300 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,700 units of inventory on account for $0.80 per unit. (It sold 3,300 of the $0.60 units and 1,400 of the $0.70.) 7 Granted the December 5 customer $80 credit for 100 units of inventory returned costing $50. These units were returned to inventory. 17 Purchased 2,300 units of inventory for cash at $0.90 each. 22 Sold 2,000 units of inventory on account for $0.99 per unit. (It sold 2,000 of the $0.70 units.) Adjustment data: 1. Accrued salaries and wages payable $450. 2. Depreciation on equipment $190 per month 3. Income tax expense was $220, to be paid next year. Journalize the December transactions and adjusting entries, assuming Blue Spruce Corp. 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 Debit Credit Account Titles and Explanation Inventory Dec. 3 V 3010 Accounts Payable 3010 Dec. 57 Accounts Receivable 3760 Sales Revenue 3760 (To record sales revenue.) Cost of Goods Sold 2960 Cost of Goods Sold 2960 2960 Inventory (To record cost of goods sold.) Sales Returns and Allowances Dec. 7 80 80 Accounts Receivable (To record sales return.) Inventory 50 Cost of Goods Sold 50 Dec. 17 Inventory 2070 Cash 2070 Dec. 22 Accounts Receivable 1980 1980 1400 1400 450 Sales Revenue (To record sales revenue.) Cost of Goods Sold Inventory (To record cost of goods sold.) Dec 31 (1) Salaries and Wages Expense Salaries and Wages Payable (To record accrued expense.) (2) Depreciation Expense Accumulated Depreciation-Equipr (To record depreciation expense.) (3) Income Tax Expense 450 190 190 220 220 Income Taxes Payable (To record income tax expense.) Prepare an income statement for December 2017. Blue Spruce Corp. Income Statement SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a classified balance sheet at December 31, 2017. (List current assets in order of liquidity.) Blue Spruce Corp. Balance Sheet Assets $ > Liabilities and Stockholders' Equity $ SHOW LIST OF ACCOUNTS LINK TO TEXT (a) Compute ending inventory and cost of goods sold under FIFO, assuming Blue Spruce Corp. uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold (b) Compute ending inventory and cost of goods sold under LIFO, assuming Blue Spruce Corp. uses the periodic inventory system. Ending Inventory Cost of Goods Sold Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT Comprehensive Accounting Cycle Review 6 On December 1, 2017, Blue Spruce Corp. had the account balances shown below. Cash Accounts Receivable Inventory (3,300 x $0.60) Equipment Debits $4,810 Accumulated Depreciation-Equipment 3,740 Accounts Payable 1,980 Common Stock 22,700 Retained Earnings $33,230 Credits $1,550 3,150 9,900 18,630 $33,230 The following transactions occurred during December. Dec. 3 Purchased 4,300 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,700 units of inventory on account for $0.80 per unit. (It sold 3,300 of the $0.60 units and 1,400 of the $0.70.) 7 Granted the December 5 customer $80 credit for 100 units of inventory returned costing $50. These units were returned to inventory. 17 Purchased 2,300 units of inventory for cash at $0.90 each. 22 Sold 2,000 units of inventory on account for $0.99 per unit. (It sold 2,000 of the $0.70 units.) Adjustment data: 1. Accrued salaries and wages payable $450. 2. Depreciation on equipment $190 per month 3. Income tax expense was $220, to be paid next year. Journalize the December transactions and adjusting entries, assuming Blue Spruce Corp. 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 Debit Credit Account Titles and Explanation Inventory Dec. 3 V 3010 Accounts Payable 3010 Dec. 57 Accounts Receivable 3760 Sales Revenue 3760 (To record sales revenue.) Cost of Goods Sold 2960 Cost of Goods Sold 2960 2960 Inventory (To record cost of goods sold.) Sales Returns and Allowances Dec. 7 80 80 Accounts Receivable (To record sales return.) Inventory 50 Cost of Goods Sold 50 Dec. 17 Inventory 2070 Cash 2070 Dec. 22 Accounts Receivable 1980 1980 1400 1400 450 Sales Revenue (To record sales revenue.) Cost of Goods Sold Inventory (To record cost of goods sold.) Dec 31 (1) Salaries and Wages Expense Salaries and Wages Payable (To record accrued expense.) (2) Depreciation Expense Accumulated Depreciation-Equipr (To record depreciation expense.) (3) Income Tax Expense 450 190 190 220 220 Income Taxes Payable (To record income tax expense.) Prepare an income statement for December 2017. Blue Spruce Corp. Income Statement SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare a classified balance sheet at December 31, 2017. (List current assets in order of liquidity.) Blue Spruce Corp. Balance Sheet Assets $ > Liabilities and Stockholders' Equity $ SHOW LIST OF ACCOUNTS LINK TO TEXT (a) Compute ending inventory and cost of goods sold under FIFO, assuming Blue Spruce Corp. uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold (b) Compute ending inventory and cost of goods sold under LIFO, assuming Blue Spruce Corp. uses the periodic inventory system. Ending Inventory Cost of Goods Sold Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT