On December 1, 2025, Crane Company had the account balances shown below.

		Debit				Credit
Cash		$4,900		Accumulated DepreciationEquipment		$1,440
Accounts Receivable		3,930		Accounts Payable		3,000
Inventory		1,980		Common Stock		10,500
Equipment		21,700		Retained Earnings		17,570
		$32,510				$32,510

Inventory = (3,300 $0.60) The following transactions occurred during December.

Dec. 3		Purchased 4,300 units of inventory on account at a cost of $0.71 per unit.
5		Sold 4,700 units of inventory on account for $1.00 per unit. (Crane sold 3,300 of the $0.60 units and 1,400 of the $0.71 units.)
7		Granted the December 5 customer $300 credit for 300 units of inventory returned costing $213. These units were returned to inventory.
17		Purchased 2,300 units of inventory for cash at $0.80 each.
22		Sold 2,200 units of inventory on account for $0.99 per unit. (Crane sold 2,200 of the $0.71 units.)

Adjustment data:

1.		Accrued salaries and wages payable $370.
2.		Depreciation on equipment $210 per month.
3.		Income tax expense was $190, to be paid next year.

Journalize the December transactions and adjusting entries, assuming Crane uses the perpetual inventory system.

Enter the December 1 balances in the ledger T-accounts and post the December transactions.

Prepare an adjusted trial balance as of December 31, 2025.

Prepare an income statement for December 2025.

Prepare a classified balance sheet at December 31, 2025. (List current assets in order of liquidity.)

Compute ending inventory and cost of goods sold under FIFO, assuming Crane Company uses the periodic inventory system.

Ending inventory		$
Cost of goods sold		$

Compute ending inventory and cost of goods sold under LIFO, assuming Crane Company uses the periodic inventory system.

Ending inventory		$
Cost of goods sold		$