Dec 23 900 units at 11,5 per unit Requirement: 1. Calculate the cost of goods sold and the inventory cost as of December 31, 2020, using the LIFO method. 2. Compute the gross profit for December 2020. Exercise II (FOR SELECTION) CD Corp. acquired some special equipment for 338000 on August 1, 2014. The useful life of the equipment was estimated to be 4 years and its residual value was assumed to be zero. The company uses the linear method and calculates the annual depreciation charges according to the number of months used. The depreciation is recorded indirectly. On November 30, 2015, the equipment was sold for 289000 cash. Requirement: Post all necessary entries for 2015 (including any adjusting entries) related to the sale of the equipment to the corresponding ledger accounts. There are no closing entries required. Exercise III (FOR SELECTION) The gross sales from whole 2020 period were 31000 and the sales returns were 4%. Additionally, the company is offering 4% of cash discount of sales to their customers (the cash sales was 23250). At the beginning of the period December 31, 2019 the merchandise inventory level was 10 100 and during the year 2020 the company purchased 15500 of merchandise with 4% cash discount (the cash purchases was 6200). Due to the low quality of the merchandise the company agreed with the suppliers on 900 purchase allowance. The freight -in cost for the 2020 period were 82. The ending inventory as of December 31, 2020 level was 2 600. Please calculate cost of goods sold and gross profit under the periodic system inventory for 2020. Exercise IV (REQUIRED ANYWAY) The Accounting Cycle - Problem Set ABC Company Ltd. Balance Sheet on Nov. 30, 2014 Assets Land Machinery equipment Office Store equipment Raw materials Inventory Office Supplies Inventory Accounts Receivable Cash, Bank Prepaid expenses Equities 1 000 Paid-in Capital 6 000 2 500 Retained Earnings 2 500 3 000 Tax payable 1 300 1 800 Loan Payable 3 000 2 500 Salary payables 1 100 5 000 Accounts payable 3 500 3 800 Unearned rent revenue 3 000 2 000 Allowance for uncollectible accounts 1 200 21 600 Total equities 21 600 Total assets Summary of transactions during December: 1. Paid outstanding salary payables. 2. Paid outstanding tax payables. 3. Paid outstanding trade creditors in the amount of 1 500. 4. Salaries to employees of 1600 were calculated for December and will paid in January. 5. Purchase of 2 500 of Office Supplies Inventory with 4% cash discount for cash transaction. 6. Purchase of raw materials Inventory of 400 was done with three-month trade credit. 7. Due to the low quality of the purchased office supplies inventory the company returned 500 of inventory that diminished the accounts payable by that amount. 8. The freight in for both supplies and raw material inventory was paid in the amount of 400. 9. Performed services for Customer XYZ, for which we will receive 160 on 2-month credit sale. 10. At the end of month, the Customer XYZ made a claim on the services and we agreed to sales allowance in the amount of 4%. ount of 160 11. Performed consulting services, in the amount of 160 with 4% for cash discount on sales (cash immediately received). 12. In November 2014 we performed additional consulting work, 3000 on credit (4/30, n 90) and in December 2014 the customer used the discount for prompt payment. 13. The cost of raw materials inventory used during December is 1 200. 14. In the beginning of October 2014, a subscription rights for local newspaper magazine of 4 000 was paid for four-month term in advance