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 depreciationequipment $ 35,625 Accounts payable 1,230,000 Deferred revenue 96,000 Bank loan payablenon-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 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 $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. Expert Answer