Comprehensive Problem 6 On December 1, 2019, Flounder Company had the account balances shown below. Debit Credit Cash $6,900 Accumulated DepreciationEquipment $1,400 Accounts Receivable 3,700 Accounts Payable 2,900 Inventory 1,700 * Common Stock 20,000 Equipment 20,800 Retained Earnings 8,800 $33,100 $33,100 *(3,400 x $0.50) The following transactions occurred during December. Dec. 3 Purchased 4,700 units of inventory on account at a cost of $0.65 per unit. 5 Sold 5,100 units of inventory on account for $0.90 per unit. (Flounder sold 3,400 of the $0.50 units and 1,700 of the $0.65.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $120. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.78 each. 22 Sold 2,000 units of inventory on account for $0.95 per unit. (Flounder sold 2,000 of the $0.65 units.) Adjustment data: 1. Accrued salaries payable $300. 2. Depreciation $200 per month. Journalize the December transactions and adjusting entries, assuming Flounder 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 Inventory 3055 Accounts Payable 3055 (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 DepreciationEquipment Salaries and Wages Payable Common Stock Retained Earnings Sales Revenue Salaries and Wages Expense Cost of Goods Sold Sales Returns & Allowances Depreciation Expense Prepare an adjusted trial balance as of December 31, 2019. FLOUNDER COMPANY Adjusted Trial Balance Debit Credit Cash $ $ Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings Sales Revenue Sales Returns and Allowances Cost of Goods Sold Salaries and Wages Expense Totals $ $ Prepare an income statement for December 2019. FLOUNDER COMPANY Income Statement $ : $ $ Prepare a classified balance sheet at December 31, 2019. (List Current Assets in order of liquidity.) FLOUNDER COMPANY Balance Sheet Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ (e) Compute ending inventory and cost of goods sold under FIFO, assuming Flounder Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold $ (f) Compute ending inventory and cost of goods sold under LIFO, assuming Flounder Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold $