Comprehensive Review Problem Year 2 The following list summarizes the transactions that took place during a start up's second year of operations. Using the information below (and assuming FIFO for inventory), prepare a list of the appropriate journal entries, including any necessary adjusting entries, and create a set of financial statements (i.e., balance sheet, income statement, and statement of cash flows). Once you have created the financial statements, provide the appropriate closing entries. Recall that there were 150 units of inventory, which had been purchased at $10 per unit, left at the end of Year One. Also calculate what the LIFO adjustment would be in Year Two. Transactions and information for the year Ordered and received 200 units of inventory purchased on account for $11 each a. b. Delivered 150 units of inventory to customer who ordered on account for $16 each At the start of the year, purchased a small R&D business for $85, consisting of the following items (fair value in parentheses) c. Land ($20) .Patents ($50) w/10 years of useful life remaining d. Spent $25 on research and development. e. Ordered and received 100 units of inventory purchased on account for $13 each A customer placed an order on account for 250 units at $17 each. 220 units were delivered