Retro Productions Ltd$.$ is a Vancouver$-$based furniture manufacturer. The company reported the following information on its trial balance for $11$ months of the year ended November $30,2021.$ Retro Productions LimitedTrial BalanceNovember $30,2021$ Debit Credit Cash $ $421,100$ Accounts receivable $1,390,000$ Inventory $2,780,000$ Supplies $39,000$ Prepaid rent $14,000$ Equipment $1,350,000$ Accumulated depreciation$$equipment $ $35,625$ Accounts payable $1,230,000$ Deferred revenue $96,000$ Bank loan payable$$non$-$current $1,240,000$ Common shares $600,000$ Retained earnings $1,239,275$ Dividends declared $120,000$ Sales $16,457,200$ Cost of goods sold $9,174,000$ Advertising expense $405,000$ Freight out $980,000$ Office expense $78,000$ Rent expense $154,000$ Salaries expense $3,482,000$ Utilities expense $61,000$ Interest expense $70,000$ Income tax expense $380,000$ $$20,898,100$ $$20,898,100$ Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned $10,000$ units of inventory on December $1.$ Dec. $1$ Received $$315,000$ on account from a major customer. $1$ Paid $$14,000$ in rent for the month of December. $4$ Paid $$375,000$ owing to a supplier from a purchase made in November. $6$ Sold $4,200$ units of inventory to a Canadian furniture retailer for $$2,121,000$ on credit, FOB shipping point. $15$ Purchased $6,000$ units of inventory from a supplier at a cost of $$290$ per unit on credit, FOB shipping point. $18$ Paid salaries of $$125,000.21$ Sold $8,000$ units of inventory for $$4,092,000$ on account, FOB shipping point. $24$ Paid $$32,000$ for advertising expenses incurred in the month. $27$ Purchased $5,000$ units of inventory from a supplier at a cost of $$300$ per unit, FOB shipping point. Adjustment and additional data: Accrued $$6,000$ for utilities and $$140,000$ for salaries. Accrued $$6,200$ 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 $$2,596,000$ was on hand in Retro Production$$s 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 $$2,596,000,$ determined that some of this inventory had a net realizable value that was $$2,000$ lower than its cost. Recorded an additional $$112,000$ 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 $31.$ Record and post the December adjusting entries, assuming the company records adjusting entries annually. Prepare an adjusted trial balance at December $31.$ Prepare $(1)$ a multiple$-$step statement of income, $(2)$ a statement of changes in equity, and $(3)$ a statement of financial position for the year ended December $31.$ Record and post the closing journal entries. Prepare a post$-$closing trial balance as at December $31.$