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Retro Productions Ltd . is a Vancouver - based furniture manufacturer. The company reported the following information on its trial balance for 1 1 months
Retro Productions Ltd is a Vancouverbased furniture manufacturer. The company reported the following information on its trial balance for months of the year ended November Retro Productions LimitedTrial BalanceNovember Debit Credit Cash $ Accounts receivable Inventory Supplies Prepaid rent Equipment Accumulated depreciationequipment $ Accounts payable Deferred revenue Bank loan payablenoncurrent Common shares Retained earnings Dividends declared Sales Cost of goods sold Advertising expense Freight out Office expense Rent expense Salaries expense Utilities expense Interest expense Income tax expense $ $ Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned units of inventory on December Dec. Received $ on account from a major customer. Paid $ in rent for the month of December. Paid $ owing to a supplier from a purchase made in November. Sold units of inventory to a Canadian furniture retailer for $ on credit, FOB shipping point. Purchased units of inventory from a supplier at a cost of $ per unit on credit, FOB shipping point. Paid salaries of $ Sold units of inventory for $ on account, FOB shipping point. Paid $ for advertising expenses incurred in the month. Purchased units of inventory from a supplier at a cost of $ per unit, FOB shipping point. Adjustment and additional data: Accrued $ for utilities and $ for salaries. Accrued $ of interest on the bank loan. Recorded annual depreciation on equipment, which has an expected useful life of eight years. Carried out a physical inventory and determined that inventory with a cost of $ was on hand in Retro Productions warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment. After adjusting the inventory to the cost determined at the count of $ determined that some of this inventory had a net realizable value that was $ lower than its cost. Recorded an additional $ of income tax payable. Instructions Record the December transactions. The company uses the FIFO cost formula. Set up T accounts, enter any opening balances, and post the general journal entries prepared in part a Prepare an unadjusted trial balance at December Record and post the December adjusting entries, assuming the company records adjusting entries annually. Prepare an adjusted trial balance at December Prepare a multiplestep statement of income, a statement of changes in equity, and a statement of financial position for the year ended December Record and post the closing journal entries. Prepare a postclosing trial balance as at December Chegg Logo There are steps to solve this one. Expertverified st step All steps Answer only Step Answer Explanation: Record the December transactions using the FIFO cost formula: Dec. Accounts receivable Sales Recorded receipt from major customer Dec. Rent expense Cash Paid rent for the month of December Dec. Accounts payable Cash Paid amount owing to supplier Dec. Accounts receivable Sales Inventory Cost of goods sold Recorded sale of units of inventory on credit, FOB shipping point Dec. Inventory Accounts payable Recorded purchase of units of inventory on credit, FOB shipping point Dec. Salaries expense Salaries payable Paid salaries Dec. Accounts receivable Sales Inventory Cost of goods sold Recorded sale of units of inventory on account, FOB shipping point Dec. Advertising expense Cash Paid for advertising expenses Dec. Inventory Accounts payable Recorded purchase of units of inventory, FOB shipping point The above answer contains a set of instructions for a financial accounting problem. The problem is focused on Retro Productions Ltd a furniture manufacturer based in Vancouver, and requires the student to record and post transactions for the month of December, prepare trial balances and financial statements, and record closing journal entries Step Explanation: TAccounts: Cash Debit Credit Beginning balance Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Ending balance
Retro Productions Ltd is a Vancouverbased furniture manufacturer. The company reported the following information on its trial balance for months of the year ended November
Retro Productions LimitedTrial BalanceNovember
Debit
Credit
Cash
$
Accounts receivable
Inventory
Supplies
Prepaid rent
Equipment
Accumulated depreciationequipment
$
Accounts payable
Deferred revenue
Bank loan payablenoncurrent
Common shares
Retained earnings
Dividends declared
Sales
Cost of goods sold
Advertising expense
Freight out
Office expense
Rent expense
Salaries expense
Utilities expense
Interest expense
Income tax expense
$
$
Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned units of inventory on December
Dec.
Received $ on account from a major customer.
Paid $ in rent for the month of December.
Paid $ owing to a supplier from a purchase made in November.
Sold units of inventory to a Canadian furniture retailer for $ on credit, FOB shipping point.
Purchased units of inventory from a supplier at a cost of $ per unit on credit, FOB shipping point.
Paid salaries of $
Sold units of inventory for $ on account, FOB shipping point.
Paid $ for advertising expenses incurred in the month.
Purchased units of inventory from a supplier at a cost of $ per unit, FOB shipping point.
Adjustment and additional data:
Accrued $ for utilities and $ for salaries.
Accrued $ of interest on the bank loan.
Recorded annual depreciation on equipment, which has an expected useful life of eight years.
Carried out a physical inventory and determined that inventory with a cost of $ was on hand in Retro Productions warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment.
After adjusting the inventory to the cost determined at the count of $ determined that some of this inventory had a net realizable value that was $ lower than its cost.
Recorded an additional $ of income tax payable.
Instructions
Record the December transactions. The company uses the FIFO cost formula.
Set up T accounts, enter any opening balances, and post the general journal entries prepared in part a
Prepare an unadjusted trial balance at December
Record and post the December adjusting entries, assuming the company records adjusting entries annually.
Prepare an adjusted trial balance at December
Prepare a multiplestep statement of income, a statement of changes in equity, and a statement of financial position for the year ended December
Record and post the closing journal entries.
Prepare a postclosing trial balance as at December
Chegg Logo
There are steps to solve this one.
Expertverified
st step
All steps
Answer only
Step
Answer
Explanation:
Record the December transactions using the FIFO cost formula:
Dec.
Accounts receivable
Sales
Recorded receipt from major customer
Dec.
Rent expense
Cash
Paid rent for the month of December
Dec.
Accounts payable
Cash
Paid amount owing to supplier
Dec.
Accounts receivable
Sales
Inventory
Cost of goods sold
Recorded sale of units of inventory on credit, FOB shipping point
Dec.
Inventory
Accounts payable
Recorded purchase of units of inventory on credit, FOB shipping point
Dec.
Salaries expense
Salaries payable
Paid salaries
Dec.
Accounts receivable
Sales
Inventory
Cost of goods sold
Recorded sale of units of inventory on account, FOB shipping point
Dec.
Advertising expense
Cash
Paid for advertising expenses
Dec.
Inventory
Accounts payable
Recorded purchase of units of inventory, FOB shipping point
The above answer contains a set of instructions for a financial accounting problem. The problem is focused on Retro Productions Ltd a furniture manufacturer based in Vancouver, and requires the student to record and post transactions for the month of December, prepare trial balances and financial statements, and record closing journal entries
Step
Explanation:
TAccounts:
Cash
Debit Credit
Beginning balance
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Ending balance
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