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Cullumber Production Ltd . is a Vancouver - based furniture manufacturer. The company reported the following information on its trial balance for 1 1 months
Cullumber Production Ltd is a Vancouverbased furniture manufacturer. The company reported the following information on its trial balance for months of the year ended November Cullumber reported the following transactions for the month of December. The company uses a perpetual inventory system and owned units of inventory on December
Dec. Received $ on account from a major customer.
Paid $ in rent for the month of December.
Paid $ owing to a supplier from a purchase made in November.
Sold units of merchandise to a Canadian furniture retailer for $ on credit, FOB shipping point.
Purchased units of merchandise from a supplier at a cost of $ per unit on credit, FOB shipping point.
Paid salaries of $
Sold units of merchandise for $ on account, FOB shipping point.
Paid $ for advertising expenses incurred in the month.
Purchased units of inventory from a supplier at a cost of $ per unit on credit, FOB shipping point.
Adjustment and additional data:
Accrued $ for utilities and $ for salaries.
Accrued $ of interest on the bank loan.
Recorded annual depreciation on equipment, which has an expected useful life of eight years.
Carried out a physical inventory and determined that inventory with a cost of $ was on hand in Cullumber Productions warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment.
After adjusting the inventory to the cost determined at the count of $ determined that some of this inventory had a net realizable value that was $ lower than its cost.
Recorded an additional $ of income tax payable.
Instructions
Record the December transactions. The company uses the FIFO cost formula.
Set up T accounts, enter any opening balances, and post the general journal entries prepared in part a
Prepare an unadjusted trial balance at December
Record and post the December adjusting entries, assuming the company records adjusting entries annually.
Prepare an adjusted trial balance at December
Prepare a multiplestep statement of income, a statement of changes in equity, and a statement of financial position for the year ended December
Record and post the closing journal entries.
Prepare a postclosing trial balance as at December
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