On January 1, 2021, Displays Incorporated had the following account balances: Accounts Cash Accounts receivable Supplies Inventory Land Accounts payable Notes payable (6%, due next year) Common stock Retained earnings Totals Debit Credit $ 23,000 20,000 26,000 66,000 228,000 $ 20,000 21,000 187,000 135,000 $ 363,000 $ 363,000 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account for $331,000 b Sold inventory on account for $575,000. The cost of the inventory sold was $311.000. c Received $544,000 from customers on accounts receivable. d. Paid freight on inventory received, $25,000 e Paid $321,000 to inventory suppliers on accounts payable of $327,000. The difference reflects purchase discounts f. Paid rent for the current year, $43,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $151,000. The payment was recorded to Salaries Expense. Year-end adjusting entries a Supplies on hand at the end of the year are $9.000 b. Accrued interest expense on notes payable for the year c. Accrued income taxes at the end of December are $19.000 Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Answer is not complete. 1. General General Requirement Journal Income Ledger Trial Balance Statement Balance Sheet Analysis Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-8) assuming a perpetual inventory system. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on December 31 in the 'General Journal' tab (these are shown as items 9-11). 3. Review the adjusted 'Trial Balance' as of December 31, 2021, in the Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2021, in the Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 12-13). 7. Using the information from the requirements above, complete the 'Analysis' tab. Rollemont General Journal > Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required in the first account field.) No Date Account Title Debit Credit 1 Jan 02 Inventory 331,000 Accounts payable 331,000 > 2 Jan 02 Accounts receivable Sales revenue > 575 000 575.000 > 3 Jan 02 Cost of goods sold Inventory 311,000 311,000 4 Jan 02 Cash Accounts receivable 544000 00 544.000 5 Jan 02 Inventory Cash 25,000 25,000 6 Jan 02 327,000 Accounts payable Cash Inventory 0 321,000 6,000 7 Jan 02 Rent expense 43,000 Cash 43,000 8 Jan 02 Salaries expense Cash 151,000 olo 151,000 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted or post-closing balances. Adjusted General Ledger Account Cash No. Accounts receivable Debit Credit Debit Credit No. 4 544,000 2 Date Jan 01 Jan 02 Jan 02 575,000 Date Dec 31 Jan 02 Jan 02 Jan 02 Jan 02 Jan 02 Balance 20.000 595,000 51,000 5 6 Balance 23,000 567 000 542.000 221,000 178,000 27,000 2 2 2 2 4 544 000 25,000 321,000 43,000 151,000 7 8 Inventory Debit No. Supplies Debit Credit No. Credit Credit Date Jan 01 Dec 31 Date Jan 01 Jan 02 Jan 02 Jan 02 Jan 02 1 Balance 26,000 9,000 331 000 9 Balance 66,000 397000 86,000 111,000 105,000 17,000 3 5 6 311,000 25,000 6.000 Land No. Debit Accounts payable Debit Credit Date Jan 01 Debit Credit No. Balance 228,000 Date Jan 01 Jan 02 Jan 02 1 Balance 20,000 351,000 24 000 331000 6 327,000 Interest payable Debit Credit Income tax payable Debit Credit No. Date Balance No. Date 0 Balance 0 19,000 10 Dec 31 1,260 1,260 11 Dec 31 19,000 Common stock Notes payable Debit Credit No. No. Date Debit Credit Date Jan 01 Balance 21,000 Balance 187.000 Jan 01 Retained earnings Debit Credit Sales revenue Debit Credit No. No. Date Jan 01 Balance 135,000 Date Jan 01 Jan 02 Balance 0 575,000 2 575.000 Cost of goods sold Debit Credit Supplies expense Debit Credit No. No. Date Dec 31 Jan 02 Balance 0 311,000 Date Jan 01 Dec 31 Balance 0 17,000 3 311,000 9 17,000 Interest expense Salaries expense Debit Credit No. Balance No. Date Debit Credit Balance Date Dec 31 Jan 02 0 8 151.000 151.000 10 Dec 31 1,260 1,260 Rent expense Income tax expense Debit Credit No. Date Debit Credit Balance No. Date Balance 0 19,000 7 Jan 02 43,000 43,000 11 Dec 31 19.000 Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Cash Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Adjusted Displays Incorporated Trial Balance December 31, 2021 Account Title Debit Credit 27.000 Accounts receivable 51.000 Inventory 105,000 Supplies 9,000 Land 228,000 Accounts payable 24,000 Interest payable 1,260 Income tax payable 19.000 Notes payable 21.000 Common stock 187,000 Retained earnings 135,000 Sales revenue 575,000 Cost of goods sold 311,000 Supplies expense 17,000 Salaries expense 151.000 Interest expense 1,260 Rent expense 43,000 Income tax expense 19,000 $ 962.260 $ 962,260 22 Total Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare an income statement for the period ended January 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection Adjusted Displays Incorporated Income Statement For the year ended December 31, 2021 Gross profit 5 0 Total operating expenses Operating income 0 0 0 0 Trial Balance Balance Sheet> Answer is not complete. Requirement General General Journal Income Trial Balance Ledger Statement Balance Sheet Analysis Prepare a classified balance sheet as of January 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Adjusted Displays Incorporated Balance Sheet December 31, 2021 Assets Liabilities Current Assets Current Liabilities: Total Current Assets Noncurrent Assets 0 Total Liabilities Stockholders' Equity 0 Total Assets Total Stockholders' Equity Total Liabilities & Stockholders' Equity $ 0 Is 0 Income Statement Analysis > Answer is not complete. General Requirement General Journal Income Ledger Trial Balance Statement Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis'. Calculate the ratios to the nearest 1 decimal place.) 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 $87,000, calculate the LIFO reserve. LIFO reserve is: (b) Assume Displays Incorporated $65,000 beginning balance of inventory comes from the base year with a cost index of 1.00. The cost index at the end of 2021 of 12. 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 dottor value LIFO) instead of FIFO in periods of rising inventory costs and stable inventory quantities 1 Inventory turnover ratio 2 Average days in inventory 3. Gross profit ratio