Exercise 8-30 (Algo) General ledger exercise; inventory transactions [LO8-1, 8-2, 8-3, 8-4, 8-5, 8-6, 8-7, 8-8] On January 1,2024 , Displays Incorporated had the following account balances: From January 1 to December 31 , the following summary transactions occurred: a. Purchased inventory on account for $336,000. b. Sold inventory on account for $600,000. The cost of the inventory sold was $316,000. c. Received $564,000 from customers on accounts receivable. d. Paid freight on inventory received, $30,000. e. Paid $326,000 to inventory suppliers on accounts payable of $330,000. The difference reflects purchase discounts of $4,000. f. Paid rent for the current year, $48,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $156,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $8,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $24,000. Complete this question by entering your answers in the tabs below. Prepare an income statement for the period ended December 31, 2024. Choose the a company's income statement. The unadjusted, adjusted, or post-closing balances will selection. Complete this question by entering your answers in the tabs below. Prepare a classified balance sheet as of December 31, 2024. Choose the appropriate accounts to complete th balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on you Complete this question by entering your answers in the tabs below. Using the information from the requirements above, complete the 'Analysis'. Analyze the following for Displays Incorporated: (a) Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming the ending balance of inventory under LIFO would have been $86,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume the $64,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2024 of 1.10. Calculate the amount the company would report for inventory using dollar-value LIFO. Ending inventory using dollar-value LIFO: (c) Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO) instead of FIFO in periods of rising inventory costs and stable inventory quantities. Journal entry worksheet Note: Enter debits before credits. Exercise 8-30 (Algo) General ledger exercise; inventory transactions [LO8-1, 8-2, 8-3, 8-4, 8-5, 8-6, 8-7, 8-8] On January 1,2024 , Displays Incorporated had the following account balances: From January 1 to December 31 , the following summary transactions occurred: a. Purchased inventory on account for $336,000. b. Sold inventory on account for $600,000. The cost of the inventory sold was $316,000. c. Received $564,000 from customers on accounts receivable. d. Paid freight on inventory received, $30,000. e. Paid $326,000 to inventory suppliers on accounts payable of $330,000. The difference reflects purchase discounts of $4,000. f. Paid rent for the current year, $48,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $156,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $8,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $24,000. Complete this question by entering your answers in the tabs below. Prepare an income statement for the period ended December 31, 2024. Choose the a company's income statement. The unadjusted, adjusted, or post-closing balances will selection. Complete this question by entering your answers in the tabs below. Prepare a classified balance sheet as of December 31, 2024. Choose the appropriate accounts to complete th balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on you Complete this question by entering your answers in the tabs below. Using the information from the requirements above, complete the 'Analysis'. Analyze the following for Displays Incorporated: (a) Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming the ending balance of inventory under LIFO would have been $86,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume the $64,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2024 of 1.10. Calculate the amount the company would report for inventory using dollar-value LIFO. Ending inventory using dollar-value LIFO: (c) Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value LIFO) instead of FIFO in periods of rising inventory costs and stable inventory quantities. Journal entry worksheet Note: Enter debits before credits