On December 1, 2019, Matthias Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment Debit $4,300 Accumulated Depreciation-Equipment 4,300 Accounts Payable 1,740' Common Stock 20,100 Retained Earnings $30,440 Credit $1,400 3,100 20,000 5,940 $30,440 "(2,900 x $0.60) The following transactions occurred during December. Dec. 3 Purchased 3,900 units of inventory on account at a cost of $0.72 per unit. 5 Sold 4,600 units of inventory on account for $0.90 per unit.(Matthias sold 2,900 of the $0.60 units and 1,700 of the $0.72.) 7 Granted the December 5 customer $180 credit for 200 units of inventory returned costing $120. These units were returned to inventory. 17 Purchased 2,400 units of inventory for cash at $0.80 each. 22 Sold 1,900 units of inventory on account for $0.95 per unit. (Matthias sold 1,900 of the $0.72 units.) Adjustment data: 1. Accrued salaries payable $430. 2. Depreciation $200 per month. 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: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. (Post entries in the order of journal entries presented above.) Cash 12/1 Bal. 12/31 Bal. 4300 12/17 2380 Accounts Receivable 4300 1277 12/1 Bal. 12/5 12/22 4140 1805 12/31 Bal. 10065 Inventory 1740 12/5 4140 2808 12/22 1368 12/1 Ball 12/3 12/5 12/17 : 1920 12/31 Bal : 12/1 Bal. Equipment 20100 20100 Accumulated Depreciation-Equipment 12/31 Bal : Accumulated Depreciation-Equipment 12/31 Bal. 4 1200 12/1 Bal. 1400 12/31 200 12/31 Bal. 1200 Accounts Payable 12/1 Bal. 3100 12/31 5908 || 12/3 2808 12/31 Bal. 5908 Salaries and Wages Payable 12/31 12/31 Bal. Common Stock Retained Earnings Sales Revenue Sales Returns & Allowances Cost of Goods Sold Salaries and Wages Expense Depreciation Expense MATTHIAS COMPANY Adjusted Trial Balance December 31, 2019 Debit Credit Cash 2380 Accounts Receivable 10065 Inventory 5100 Equipment 20100 Accumulated Depreciation-Equipment 1200 Accounts Payable 5908 Salaries and Wages Expense Cost of Goods Sold Sales Returns and Allowances Depreciation Expense Sales Revenue Accrued expense Common Stock Retained Earnings Prepare an income statement for December 2019. MATTHIAS COMPANY Income Statement For the Month Ending December 31, 2019 . Prepare a classified balance sheet at December 31, 2019.(List current assets in order of liquidity.) MATTHIAS COMPANY Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Compute ending inventory and cost of goods sold under FIFO, assuming Matthias Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold $ eTextbook and Media List of Accounts x Your answer is incorrect. Compute ending inventory and cost of goods sold under LIFO, assuming Matthias Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold $
