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On December 1, 2014, Harrisen Company had the account balances shown below. Cash $ 4,800 Accumulated DepreciationEquipment $ 1,500 Accounts Receivable 3,900 Accounts Payable 3,000
On December 1, 2014, Harrisen Company had the account balances shown below.
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The following transactions occurred during December.
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Adjustment data:
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Instructions
1. | Journalize the December transactions and adjusting entries, assuming Harrisen uses the perpetual inventory method. |
2. | Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the accounts mentioned above, use the following additional accounts: Income Taxes Payable, Salaries and Wages Payable, Sales Revenue, Sales Returns and Allowances, Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, and Income Tax Expense. |
3. | Prepare an adjusted trial balance as of December 31, 2014. |
4. | Prepare an income statement for December 2014 and a classified balance sheet at December 31, 2014. |
5. | Compute ending inventory and cost of goods sold under FIFO, assuming Harrisen Company uses the periodic inventory system. |
6. | Compute ending inventory and cost of goods sold under LIFO, assuming Harrisen Company uses the periodic inventory system. |
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