Cullumber Production Ltd$.$ is a Vancouver$-$based furniture manufacturer. The company reported the following information on its trial balance for $11$ months of the year ended November $30,2021.$

CULLUMBER PRODUCTIONS LIMITED

Trial Balance

November $30,2021$

Debit Credit

Cash $$417,700$

Accounts receivable $1,408,070$

Inventory $2,520,000$

Supplies $39,320$

Prepaid rent $14,460$

Equipment $1,312,000$

Accumulated depreciation $-$ equipment $$33,615$

Accounts payable $1,220,050$

Deferred revenue $91,500$

Bank loan payable$-$non$-$current $1,276,000$

Common shares $623,700$

Retained earnings $2,252,195$

Dividends declared $113,110$

Sales $15,312,800$

Cost of goods sold $9,115,400$

Advertising expense $405,340$

Freight out $1,033,170$

Office expense $85,340$

Rent expense $159,060$

Salaries expense $3,624,940$

Travel expense $46,300$

Utilities expense $65,340$

Interest expense $63,860$

Income tax expense $386,450$

$$20,809,860$

$$20,809,860$

Cullumber reported the following transactions for the month of December. The company uses a perpetual inventory system and owned $10,000$ units of inventory on December $1.$

Dec. $1$ Received $$311,370$ on account from a major customer.

$1$ Paid $$14,460$ in rent for the month of December.

$4$ Paid $$352,950$ owing to a supplier from a purchase made in November.

$6$ Sold $4,500$ units of merchandise to a Canadian furniture retailer for $$2,101,500$ on credit, FOB shipping point.

$15$ Purchased $5,680$ units of merchandise from a supplier at a cost of $$295$ per unit on credit, FOB shipping point.

$18$ Paid salaries of $$130,800.$

$21$ Sold $7,470$ units of merchandise for $$3,525,840$ on account, FOB shipping point.

$24$ Paid $$32,200$ for advertising expenses incurred in the month.

$27$ Purchased $5,420$ units of inventory from a supplier at a cost of $$272$ per unit on credit, FOB shipping point.

Adjustment and additional data:

$1.$ Accrued $$6,040$ for utilities and $$134,650$ for salaries.

$2.$ Accrued $$6,380$ of interest on the bank loan.

$3.$ Recorded annual depreciation on equipment, which has an expected useful life of eight years.

$4.$ Carried out a physical inventory and determined that inventory with a cost of $$2,563,400$ was on hand in Cullumber Production$$s warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment.

$5.$ After adjusting the inventory to the cost determined at the count of $$2,563,400,$ determined that some of this inventory had a net realizable value that was $$2,000$ lower than its cost.

$6.$ Recorded an additional $$105,480$ of income tax payable.

Instructions

$1.$ Record the December transactions. The company uses the FIFO cost formula.

$2.$ Set up T accounts, enter any opening balances, and post the general journal entries prepared in part $($a$).$

$3.$ Prepare an unadjusted trial balance at December $31.$

$4.$ Record and post the December adjusting entries, assuming the company records adjusting entries annually.

$5.$ Prepare an adjusted trial balance at December $31.$

$6.$ Prepare $(1)$ a multiple$-$step statement of income, $(2)$ a statement of changes in equity, and $(3)$ a statement of financial position for the year ended December $31.$

$7.$ Record and post the closing journal entries.

$8.$ Prepare a post$-$closing trial balance as at December $31.$