Flash Companys trial balance at November 30, 2020, is presented below. Flash Company uses a periodic inventory system (With FIFO cost flow method).

Flash Company
November 30, 2020 Trial Balance
	DR	CR
Accounts Receivable	$378,000
Allowance for Doubtful Accounts		$45,000
Accumulated Depreciation- Building		79,000
Accumulated Depreciation- Equipment		45,600
Accumulated Amortization - Patents		3,000
Building	462,000
Cash	150,000
Dividends	-
Equipment	167,230
Goodwill	24,000
Patents	60,000
Inventory	251,000
Land	251,000
Prepaid Insurance	5,800
Accounts Payable		267,000
Notes Payable		-
Unearned Revenue		10,000
Interest Payable		-
Share Capital ($5 par)		880,000
Retained Earnings		295,730
Sales		833,720
Sales Returns & Allowances	10,000
Amortization Expense	200
Bad Debt Expense	-
Cost of Goods Sold	501,350
Depreciation Expense- Building	10,000
Depreciation Expense- Equipment	5,600
Interest Expense	6,000
Insurance Expense	1,670
Entertainment Expense
Postage Expense
Miscellaneous Expense
Gain/Loss on Disposal of Equipment	-
Rent Expense	69,400
Utility Expense	11,000
Wages & Salaries Expense	94,800
Totals	$2,459,050	$2,459,050

December normal Journal Entries

Date	Transaction
Dec 1	Paid rent expense of $10,000 for December.
Dec 1	Took out bank note for $300,000 with an interest rate of 12% ($5,000 of the note payable become due in 2021).
Dec 3	Purchased 1,000 units of inventory for $500,000 terms 2/10 net 30
Dec 5	Sold land with cost of $35,000 for $55,000.
Dec 8	Sold equipment with original cost of $50,000 and accumulated depreciation of $25,000 for $12,000.
Dec 9	Purchased building for $40,000.
Dec 10	Sold 400 units of inventory on account for $600,000.
Dec 11	Paid for inventory purchased December 3.
Dec 12	Paid postage $200, Miscellaneous $400, Entertainment $170 in cash.
Dec 18	Wrote off uncollectible account $25,000.
Dec 20	Received payment in full for sale on December 10.
Dec 31	Declared and paid dividends of $1 per share.
Dec 31	Paid wages and salaries of $15,000.

Additional information:

1. A record stated that beginning inventory on December 1 should be 602 units. 2. Interest expense on the bank note on December 1 has not yet been accrued.

3. Depreciation expense for the month is $4,500 for building and $3,500 for equipment.

4. Prepaid insurance of $600 expired in December. 5. Unearned revenue of $15,000 was earned during the month. 6. Amortization expense for the month $500. 7. Recorded bad debts expense based on the aging of accounts receivable, as follows:

	Age of Accounts
	130 Days	3160 Days	6190 Days	Over 90 Days
Accounts Receivable	$ 600,000	$ 500,000	$ 60,000	$ 40,000
Estimated percent uncollectible	0.3%	3%	30%	35%

Requirements:

1. Journalize and post normal monthly transactions to general ledger accounts in T accounts.

2. Prepare a trial balance as at December 31, 2020. (Hint: Assets first in order of liquidity).

3. Journalize and post adjusting entries in the same T accounts as requirement #1 above.

4. Prepare an adjusted trial balance as at December, 2020.

5. Generate income statement, statement of owners equity, and classified balance sheet for the year ended December 31, 2020. (Note: November 30, 2020 Trial Balance represents the accumulated revenue and expenses of the first 11 months in 2020. Tax rate: 0% - There is no tax expense).

6. Journalize and post closing entries in the same T accounts in requirement #1 above. 7. Prepare a post closing trial balance as at December, 2020.