Pharaoh productions limited

Trial Balance

November 30, 2021

Debit. Credit

Cash. $389890

Account receivable. 1526560

Inventory. 3000000

Supplies. 36590

Prepaid rent. 13980

Equipment. 1391000

Accumulate depreciation- equipment credits $38315

Accounts payable. $1138260

Deferred revenue. 88550

Bank loan payable-non current. 1154000

Common shares. 567200

Retained earnings. 2414835

Divided declared. 108900

Sales. 15482800

Cost of goods sold. 8719640

Advertising expense. 434260

Freight out. 1032750

Office expense. 82370

Rent expense 153780

Salary expense. 3418870

Travel expense. 47700

Utilities expense. 55950

Interest expense. 71740

Income tax expense. 399980

$20833960 $20833960

Pharaoh reported the following transactions for month of December. The company uses a perpetual inventory system and owned 10000 units of inventory on December 1.

Dec. 1 received $302870 on account from a major customer.

Dec. 1 paid $13980 in rent for month of December.

Dec. 4 paid $372010 owing to a supplier from a purchase made in November

Dec. 6 sold 4190 units of merchandise to a Canadian furniture retailer for $2048910 on credit, FOB shipping point.

Dec. 15 purchased 6080 units of merchandise from a supplier at a cost of $274 per unit on credit, FOB shipping point.

Dec 18 Paid salaries of $129730.

Dec. 21 sold 8510 units of merchandise for $4237980 on account, FOB shipping point.

Dec. 24 paid $35120 for advertising expenses incurred in the month.

Dec. 27 purchased 4750 units of inventory from a supplier at a cost of $277 per unit on credit, FOB shipping point.

1. Record the December transactions. The company uses the FIFO cost formula.

2. Prepare T accounts and enter the opening balances.

3. Post the general journal entries prepared in part(a)

1. Record annual depreciation on equipment, which has an expected useful life of eight years

2.Carried out a physical inventory and Carried out a physical inventory and determined that inventory with a cost of 2235500 was on hand in pharoah productions warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment. Record the December adjusting entry determined that inventory with a cost of 2235500 was on hand in pharoah productions warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment. Record the December adjusting entry

3. After adjusting in the inventory to the cost determined at the count of 2235500, determined that some of this inventory has a net realizable value that was $2000 lower than its cost

4. Recorded an additional $111230 of income tax payable

Record the December adjusting entries